Ryder System Beats On Q4; Forecasts Reduced 2023 Earnings On Slowing Macroeconomic & Freight Environment

Ryder System Inc R reported fourth-quarter FY22 sales growth of 19% year-on-year to $3.09 billion, beating the consensus of $3.04 billion.
Revenue from Fleet management solutions increased 6% to $1.59 billion, Supply Chain Solutions rose 44% and Dedicated Transportation Solutions climbed 13%.
Earnings from continuing operations for the quarter were $200 million versus $182 million last year.
Adjusted EPS of $3.89 beat the analyst consensus of $3.50.
Ryder System held $267 million in cash and equivalents as of Dec. 31, 2022. Net cash provided by operating activities for the year totaled $2.3 billion.
In February 2023, the board authorized a new 2-million-share discretionary repurchase program.
Ryder EVP & CFO John Diez said, "In 2023, we expect strong but reduced earnings as a slowing macroeconomic and freight environment drive lower results in used vehicle sales and rental. We expect these headwinds to be partially offset by continued earnings momentum in supply chain and dedicated."
Outlook: Ryder sees FY23 adjusted EPS of $11.05 - $12.05 versus the consensus of $10.91.
The company expects Q1 adjusted EPS of $2.75 - $3.00 versus the consensus of $2.91.
Price Action: R shares are trading higher by 2.92% at $99.66 on the last check Wednesday.

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