Earnings Preview: Ryder System - Analyst Blog

Logistics and transportation solution provider Ryder System Inc. (R) is slated to release its first quarter 2010 results on April 21, before the opening bell.

Management expects first quarter 2010 earnings to be in the range of 17–22 cents per share, lower than the 30 cents per share reported in the first quarter of 2009.

For full year 2010, Ryder forecasts earnings to be in the range of $1.80 to $1.95 per share. The anticipated earnings growth compared with the previous year is expected as a result of improved commercial rental performance, productivity initiatives, better used-vehicle sales, stronger Supply Chain Solutions (SCS) results, lower annual pension expense and the benefit of 2009 stock repurchases. Total revenue is expected to be approximately $4.9 billion, which is flat compared with 2009.

Estimate Revision Trend

Ryder System is expected to earn 20 cents per share in the quarter, as per the Zacks Consensus Estimate. The company had reported a profit of 25 cents in the first quarter of 2009 and 41 cents per share in the last quarter of 2009. According to the Zacks Consensus Estimate, Ryder System is expected to record net earnings of $1.86 per share for full year 2010, in contrast to a net profit of $1.70 per share reported in 2009.

Over the last 7 days as well as the last 30 days, the stock has not witnessed any estimates revision -- upward or downward -- from the 8 analysts covering the stock. The absence of any estimate revisions for the first quarter indicates a lack of any clear directional pressure on the performance of the shares in the near term.

With respect to earnings surprises, the stock has been almost steady over the last four quarters, with three positive surprises. The average remained positive at 5.5%. This implies that it has surpassed the Zacks Consensus Estimate by 5.5% over that period.
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