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Mar 31, 2023
Ryder Q1 2023 Earnings Report
Ryder reported strong first-quarter results driven by their balanced growth strategy, despite a weaker freight environment. The company demonstrated resilience through pricing actions and revenue growth in dedicated and supply chain solutions, while also managing the normalization of used vehicle sales and rental market conditions.
Key Takeaways
Ryder System, Inc. reported a strong first quarter in a challenging freight environment, with total revenue of $3.0 billion, up 3%, and operating revenue of $2.3 billion, up 6%. GAAP EPS was $2.95, while comparable EPS (non-GAAP) was $2.81. The company is raising the low end of its full-year comparable EPS forecast due to modestly higher-than-expected used vehicle sales trends.
Total revenue increased by 3% to $3.0 billion and operating revenue increased by 6% to $2.3 billion.
GAAP EPS from continuing operations was $2.95, compared to $3.35 in the prior year.
Comparable EPS (non-GAAP) from continuing operations was $2.81, down from $3.59 in the prior year.
The company increased the low end of its full-year comparable EPS (non-GAAP) forecast to $11.30 - $12.05.
Ryder
Ryder
Ryder Revenue by Segment
Revenue by Segment
ChoiceLease Revenue
CapyFin.comCommercial rental Revenue
CapyFin.comSelectCare & other Revenue
CapyFin.comFuel services Revenue
CapyFin.comSupply Chain Solutions Revenue
CapyFin.comDedicated Transport Revenue
CapyFin.com Forward Guidance
Ryder expects strong but reduced earnings in 2023 due to weak freight conditions impacting used vehicle sales and rental. Contractual lease, dedicated, and supply chain businesses are expected to improve based on growth and return initiatives. The business is expected to achieve ROE in line with its high-teens target.
Positive Outlook
- Operating revenue growth (non-GAAP) of approximately 4%.
- Net cash from operating activities from continuing operations of approximately $2.4B.
- Free cash flow (non-GAAP) of approximately $200M.
- Adjusted ROE forecast remains at 16% - 18%.
- Increased low end of comparable EPS (non-GAAP) forecast to $11.30 - $12.05 from prior forecast of $11.05 - $12.05
Challenges Ahead
- Full-Year 2023Total Revenue Growth~1%
- FY23 GAAP EPS (includes ~$3.75 cumulative currency translation charge for UK exit)$7.21 - $7.96
- Capital Expenditures~$3.0B
- Debt-to-Equity~200%
- Second Quarter 20232Q23 GAAP EPS (includes ~$3.75 cumulative currency translation charge for UK exit)$(1.12) - $(0.87)
Revenue & Expenses
Visualization of income flow from segment revenue to net income