- 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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