Piper Jaffray Remains Neutral On Ryder System (R)

Piper Jaffray remained Neutral on Ryder System R in a research report published today. Piper Jaffray has previously given Ryder System a $47 price target. In the report, Piper Jaffray states, "Yesterday before the market, R reported "continuing" 4Q10 EPS of $0.65 (up 58.8%), modestly above our $0.64 estimate and Consensus of $0.63; however, the 4Q10 EPS included a $0.05 benefit from a lower adjusted tax rate (35.9% vs. our 41.3% est), implying that the truly "clean" 4Q10 EPS was $0.60 – an operating miss. Lower SCS and DCC profitability drove the downside and, while FMS was inline, it benefited from higher gains on used equipment sales. R mgmt provided mixed guidance: 1Q11 EPS is guided to range $0.40-$0.45, with the midpoint 6% below Consensus of $0.45, but 2011 EPS is guided to span $2.80-$2.90, with the midpoint 1% above Consensus EPS." Shares of Ryder System were at $50.37 at the time of posting, down 0.73% from Thursday's market close.