NYSE$R

Ryder System Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Ryder's Q3 2021 earnings reflected record results driven by favorable demand and pricing in used vehicle sales and rental, as well as higher lease returns from pricing initiatives.

Ryder System, Inc. reported a strong third quarter in 2021, with GAAP EPS of $2.58 compared to $0.85 in the prior year and a comparable EPS (non-GAAP) of $2.55 versus $1.21 in the prior year. Total revenue reached $2.5 billion and operating revenue (non-GAAP) was $2.0 billion, representing increases of 14% and 11% respectively, driven by growth across all business segments. The company has increased its full-year EPS forecast and expects to achieve an adjusted ROE of 18% - 19%.

  • GAAP EPS from continuing operations was $2.58, compared to $0.85 in the prior year.
  • Comparable EPS (non-GAAP) from continuing operations was $2.55, compared to $1.21 in the prior year.
  • Total revenue reached $2.5 billion, and operating revenue (non-GAAP) was $2.0 billion, up 14% and 11%, respectively.
  • The company increased GAAP EPS forecast to $8.60 - $8.70 from $7.40 - $7.70.

Headline financials

Total Revenue

$2.46B

Previous: $2.15B+14.3%
EPS (adj)

$2.55

Previous: $1.21+110.7%
Rental Utilization - Power

82.8%

Previous: 70.8%+16.9%
SelectCare Avg Fleet

53.9K

Previous: 56.5K-4.6%
Free Cash Flow

$138M

Previous: $35.8M+285.3%
Net Income

$138M

Previous: $35.8M+285.3%
Operating Income

$2.21B

Previous: $1.9B+16.0%
Gross Profit

$2.46B

Previous: $2.15B+14.3%
Cash & Equivalents

$203M

Previous: $684M-70.4%
Total Assets

$12.9B

Previous: $13.6B-5.5%

Revenue & EPS history

Ryder · Revenue · Quarterly

$2.46B

Q3 2021+14.3%vs Q3 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Ryder · $2.62B total across 6 segments · Q3 2021

  • Supply Chain Solutions
    $802M+17.1%
  • ChoiceLease
    $800M+1.4%
  • Dedicated Transportation
    $380M+26.9%
  • Commercial Rental
    $301M+36.6%
  • Fuel Services
    $189M+31.2%
  • SelectCare & Other
    $147M+1.6%

Forward guidance

Ryder provided full year 2021 and fourth quarter 2021 forecasts. FY21 GAAP EPS is projected to be $8.60 - $8.70, and comparable EPS (non-GAAP) is expected to be $8.40 - $8.50. The company anticipates an ROE of 18% - 19% and free cash flow of $1.0B - $1.1B. For the fourth quarter, GAAP EPS is forecasted at $2.27 - $2.37, and comparable EPS (non-GAAP) is forecasted at $2.36 - $2.46.

Tailwinds

  • Increased GAAP EPS forecast to $8.60 - $8.70 from $7.40 - $7.70
  • Increased comparable EPS (non-GAAP) forecast to $8.40 - $8.50 from $7.20 - $7.50
  • Expect to achieve adjusted ROE of 18% - 19%
  • Maintained cash flow from operating activities forecast of $2.2 billion
  • Increased free cash flow (non-GAAP) forecast to $1.0 billion - $1.1 billion

Headwinds

  • Labor shortages are affecting current results in DTS and SCS.
  • Supply chain disruptions are impacting SCS automotive customers.
  • Unallocated Central Support Services (CSS) costs increased to $17 million from $8 million in the prior year, primarily due to higher compensation-related expenses.
  • Effective income tax rate from continuing operations was 24.3% as compared to 17.7% in the prior year.
  • Year-to-date operating cash flow remained at $1.7 billion, reflecting higher earnings, offset by higher working capital needs.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2021

Historical avgQ3 2021

-0.5%

Avg return

Earnings day

-1.6%

Avg return

5 days after

+0.5%

Avg return

30 days after

52%

36 / 69 earnings

Positive

+15.3%

Q1 2020

Best reaction

-20.1%

Q4 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.7%+8.8%+7.1%
Q4 2025+2.4%+0.7%-11.4%
Q3 2025-12.2%-7.6%-8.0%
Q2 2025-0.8%-1.2%+2.1%
Q1 2025-1.9%+0.1%+8.2%
Q4 2024+3.0%+5.2%-11.1%
Q3 2024-3.6%+0.1%+14.2%
Q2 2024+1.8%+7.3%+9.5%
Q1 2024+12.1%+11.9%+10.5%
Q4 2023-7.6%-9.5%-5.2%
Q3 2023-4.9%-3.0%+9.8%
Q2 2023+8.4%+11.3%+5.6%
Q1 2023-6.4%-3.8%-4.1%
Q4 2022+1.9%+1.8%-14.2%
Q3 2022+9.9%+7.9%+28.7%
Q2 2022+4.4%+4.3%+8.4%
Q1 2022+4.4%+4.5%+17.9%
Q4 2021+2.7%+2.8%+10.1%
Q3 2021-4.8%-5.0%-6.2%
Q2 2021+4.5%+2.5%+9.9%
Q1 2021+6.7%+4.5%+6.5%
Q4 2020-6.2%-7.5%+11.9%
Q3 2020+1.4%-1.2%+21.0%
Q2 2020-10.8%-14.4%-1.3%
Q1 2020+15.3%+6.8%+11.6%
Q4 2019-20.1%-23.4%-38.5%
Q3 2019-12.1%-8.9%-3.3%
Q2 2019-10.2%-15.9%-19.3%
Q1 2019-7.5%-2.8%-20.2%
Q4 2018+6.5%+5.8%+0.7%
Q3 2018-10.3%-9.3%-12.1%
Q2 2018+7.3%+5.0%+6.3%
Q1 2018-9.1%-9.3%-6.9%
Q4 2017-11.4%-11.8%-11.3%
Q3 2017-1.7%+1.6%-6.5%
Q2 2017-0.5%-1.1%+1.0%
Q1 2017-14.1%-14.3%-15.7%
Q4 2016-4.9%-4.5%-1.3%
Q3 2016+5.6%+5.2%+22.9%
Q2 2016-5.9%-6.6%-8.0%
Q1 2016+9.5%
Q4 2015-5.0%
Q3 2015-2.3%
Q2 2015-5.8%
Q1 2015+2.9%
Q4 2014+5.3%
Q3 2014-3.2%
Q2 2014+1.3%
Q1 2014+2.1%
Q4 2013+0.1%
Q3 2013+3.7%
Q2 2013-2.2%
Q1 2013-0.6%
Q4 2012+6.7%
Q3 2012+2.7%
Q2 2012+8.2%
Q1 2012+1.2%
Q4 2008+0.4%
Q4 2011+0.4%
Q3 2011+9.5%
Q4 2010-0.9%
Q2 2011-0.9%
Q1 2010+6.2%
Q1 2011+1.0%
Q3 2009-2.7%
Q3 2010-2.7%
Q4 2009+0.6%
Q2 2009+0.6%
Q2 2010+0.6%

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