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Mar 31, 2022
Ryder Q1 2022 Earnings Report
Ryder's first quarter 2022 results reflected significantly improved performance in Fleet Management Solutions and higher results in Dedicated Transportation Solutions.
Key Takeaways
Ryder System, Inc. reported record first-quarter results, driven by improved performance in FMS and DTS, exceeding forecasts due to strong used vehicle sales and rental demand, resulting in a record ROE of 25%.
GAAP EPS from continuing operations was $3.35, compared to $0.97 in the prior year.
Comparable EPS (non-GAAP) from continuing operations was $3.59, compared to $1.09 in the prior year.
Total revenue reached $2.9 billion, and operating revenue (non-GAAP) was $2.2 billion, up 28% and 22%, respectively.
The company increased its full-year 2022 GAAP EPS forecast to $12.83 - $13.83 from $10.40 - $11.40.
Ryder
Ryder
Ryder Revenue by Segment
Revenue by Segment
Supply Chain Solutions Revenue
CapyFin.comDedicated Transport Revenue
CapyFin.com Forward Guidance
Ryder has increased its 2022 ROE and comparable EPS forecasts, anticipating a moderation in the used vehicle sales and rental market in the second half of the year, with slower freight growth partially offset by ongoing vehicle production constraints.
Positive Outlook
- Ryder expects the accelerated growth in SCS and DTS segments to continue.
- The company anticipates the multi-year lease pricing initiative to continue benefiting annual earnings.
- Ryder expects to surpass the $100 million multi-year maintenance cost-savings target established in 2019.
- SCS and DTS acquisitions are performing well and in-line with expectations, providing enhanced capabilities in e-commerce fulfillment and multi-client warehousing.
- The balance sheet remains strong, with ongoing share repurchase program and capacity for acquisitions.
Challenges Ahead
- The company anticipates that the very strong used vehicle sales and rental market environment will moderate in the second half of the year.
- Slower freight growth is expected.
- Ongoing vehicle production constraints are anticipated.
- The company is exiting the lower-return UK business by mid-2023.
- SCS EBT as a percentage of SCS operating revenue is below the company's long-term target of high single-digits for the first quarter 2022 and the trailing 12-month period.
Revenue & Expenses
Visualization of income flow from segment revenue to net income