Ryder Q1 Earnings Miss Estimates; Warns On Reduced Earnings In 2023 On Weak Freight Conditions

Ryder System Inc R reported first-quarter FY23 sales growth of 3% year-on-year to $2.95 billion, missing the consensus of $2.99 billion.
Revenue from Fleet management solutions decreased 2% to $1.5 billion, Supply Chain Solutions rose 10%, and Dedicated Transportation Solutions climbed 7%.
Earnings from continuing operations before taxes for the quarter were $201 million versus $252 million last year.
Adjusted EPS of $2.81 missed the analyst consensus of $2.96.
Ryder System held $253 million in cash and equivalents as of March 31, 2023. Net cash provided by operating activities for the quarter totaled $478 million.
"We continue to expect strong but reduced earnings in 2023 as weak freight conditions throughout the year impact used vehicle sales and rental," says Ryder Chief Financial Officer John Diez.
Outlook: Ryder raised the low end of adjusted EPS forecast to $11.30 - $12.05 from the prior forecast of $11.05 - $12.05 versus the consensus of $11.84.
Adjusted ROE (ROE) forecast remains at 16% - 18%. The company's operating revenue growth forecast remains at approximately 4%.
For Q2, the company expects adjusted EPS of $2.80 - $3.05 against the consensus of $3.02.
Price Action: R shares are trading lower by 5% at $79.00 on the last check Wednesday.

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