Ryder System Q2 Results Beat Street View; Clocks 27% Revenue Growth

Ryder System, Inc. R reported second-quarter FY22 revenue growth of 27.4% year-over-year to $3.03 billion, beating the consensus of $2.89 billion.
Adjusted EPS improved to $4.43 from $2.40 in 2Q21, beating the consensus of $4.01.
Operating revenue increased by 20% Y/Y to $2.3 billion.
Revenue by segments: Fleet Management Solutions (FMS) $1.62 billion (+15% Y/Y), Supply Chain Solutions (SCS) $1.17 billion (+51% Y/Y), and Dedicated Transportation Solutions (DTS) $450 million (+27% Y/Y).
Earnings from continuing operations increased by 61% Y/Y to $240.3 million.
Ryder Systems' cash provided by operating activities from continuing operations year-to-date totaled $1.1 billion, compared to $1.13 billion a year ago. Free cash flow was $551.3 million.
The company recorded an adjusted return on equity (ROE) of 28%, reflecting ongoing truck capacity constraints in the market and continued benefits from initiatives to increase returns and drive higher core earnings.
"Looking ahead, we've increased our 2022 ROE and comparable EPS forecasts to reflect improved rental and SCS performance. Due to OEM delivery delays, we expect to defer approximately $200 million of planned lease capital to 2023. As such, we have increased our free cash flow forecast to $750 - $850 million and now expect our ending lease fleet in North America to be up approximately 2,000 vehicles," commented Ryder Chairman and CEO Robert Sanchez.
3Q22 Outlook: Ryder expects GAAP EPS of $3.41 - $3.66 and Comparable EPS of $3.40 - $3.65 (consensus $3.42).
FY22 Outlook: The company expects total revenue growth of ~22% and operating revenue (non-GAAP) growth of ~16%; comparable EPS of $14.30 - $14.80, versus the consensus of $14.19.
It expects ROE of 25%-26% and net cash from operating activities from continuing operations of ~$2.3 billion.
Price Action: R shares are trading higher by 3.51% at $76.78 on the last check Wednesday.

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