Commercial rental vehicle and delivery company Ryder (NYSE:R) will be reporting results tomorrow before market open. Here’s what to look for.
Ryder missed analysts’ revenue expectations by 1.5% last quarter, reporting revenues of $3.19 billion, up 5.5% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EBITDA estimates and EPS guidance for next quarter missing analysts’ expectations.
Is Ryder a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Ryder’s revenue to grow 1.3% year on year to $3.14 billion, slowing from the 4.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.39 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings.
Looking at Ryder’s peers in the transportation and logistics segment, some have already reported their Q1 results, giving us a hint as to what we can expect. FedEx delivered year-on-year revenue growth of 1.9%, beating analysts’ expectations by 0.9%, and CSX reported a revenue decline of 7%, falling short of estimates by 1.1%. FedEx traded down 6.3% following the results while CSX was up 1.4%.
Read our full analysis of FedEx’s results here and CSX’s results here.
Stocks, especially growth stocks where cash flows further in the future are more important to the story, have had a good 2024. An economic soft landing (so far), the start of the Fed's rate cutting campaign, and the election of Donald Trump were positives for the market, and while some of the transportation and logistics stocks have shown solid performance, the group has generally underperformed, with share prices down 11.3% on average over the last month. Ryder is down 7.5% during the same time and is heading into earnings with an average analyst price target of $165.99 (compared to the current share price of $134.20).
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