NYSE$R

Ryder System Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported strong returns in a weak freight environment and raised full-year guidance.

Ryder reported a decrease in total revenue to $2.9 billion but an increase in operating revenue to $2.4 billion. GAAP EPS was $3.44, while comparable EPS was $3.58. The company raised its full-year comparable EPS forecast to $12.60 - $12.85 and adjusted ROE forecast to 18% - 19%.

  • GAAP EPS from continuing operations was $3.44, compared to $4.82 in the prior year.
  • Comparable EPS (non-GAAP) from continuing operations was $3.58, compared to $4.45 in the prior year.
  • Total revenue was $2.9 billion, compared to $3.0 billion in the prior year.
  • Operating revenue (non-GAAP) was $2.4 billion, up 1%.

Headline financials

Total Revenue

$2.92B

Previous: $3.04B-3.7%
EPS (adj)

$3.58

Previous: $4.45-19.6%
Rental Utilization - Power

75.0%

Previous: 83.2%-9.9%
Free Cash Flow

$161M

Previous: $246M-34.6%
Net Income

$161M

Previous: $246M-34.6%
Operating Income

$2.59B

Previous: $2.71B-4.3%
Gross Profit

$2.92B

Previous: $3.04B-3.7%
Cash & Equivalents

$159M

Previous: $456M-65.2%
Total Assets

$15.3B

Previous: $14.5B+5.7%

Revenue & EPS history

Ryder · Revenue · Quarterly

$2.92B

Q3 2023-3.7%vs Q3 2022
Beat estimate in 3 of 15 quarters(20%)
ActualEstimate

Revenue by segment

Ryder · $3.07B total across 6 segments · Q1 2023

  • Supply Chain Solutions
    $1.2B+10.3%
  • ChoiceLease
    $776M
  • Dedicated Transportation
    $454M+6.8%
  • Commercial Rental
    $304M
  • SelectCare & Other
    $182M
  • Fuel Services
    $152M

Forward guidance

Ryder expects to achieve earnings and return targets throughout the cycle, despite weakening freight conditions and used vehicle pricing.

Tailwinds

  • FY23 Comparable EPS (non-GAAP) is expected to be $12.60 - $12.85
  • FY23 Operating Revenue Growth (non-GAAP) is expected to be ~2%
  • FY23 Net Cash from Operating Activities from Continuing Operations is expected to be ~$2.5B
  • FY23 Free Cash Flow (non-GAAP) is expected to be ~$100M
  • Adjusted ROE is expected to be 18% - 19%

Headwinds

  • Total Revenue Growth is expected to be ~(2%)
  • FY23 GAAP EPS (includes ~$3.96 cumulative currency translation charge for FMS UK exit) is expected to be $8.44 - $8.69
  • Capital Expenditures are expected to be ~$3.2B
  • Debt-to-Equity is expected to be ~220%
  • 4Q23 GAAP EPS is expected to be $2.45 - $2.70

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 2023

Historical avgQ3 2023

-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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