Ryder Q1 2022 Earnings Report
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
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