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Ryder
🇺🇸 NYSE:R
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Sep 30, 2021

Ryder Q3 2021 Earnings Report

Ryder's Q3 2021 earnings reflected record results driven by favorable demand and pricing in used vehicle sales and rental, as well as higher lease returns from pricing initiatives.

Key Takeaways

Ryder System, Inc. reported a strong third quarter in 2021, with GAAP EPS of $2.58 compared to $0.85 in the prior year and a comparable EPS (non-GAAP) of $2.55 versus $1.21 in the prior year. Total revenue reached $2.5 billion and operating revenue (non-GAAP) was $2.0 billion, representing increases of 14% and 11% respectively, driven by growth across all business segments. The company has increased its full-year EPS forecast and expects to achieve an adjusted ROE of 18% - 19%.

GAAP EPS from continuing operations was $2.58, compared to $0.85 in the prior year.

Comparable EPS (non-GAAP) from continuing operations was $2.55, compared to $1.21 in the prior year.

Total revenue reached $2.5 billion, and operating revenue (non-GAAP) was $2.0 billion, up 14% and 11%, respectively.

The company increased GAAP EPS forecast to $8.60 - $8.70 from $7.40 - $7.70.

Total Revenue
$2.46B
Previous year: $2.15B
+14.3%
EPS
$2.55
Previous year: $1.21
+110.7%
Rental utilization
82.8%
Previous year: 70.8%
+16.9%
SCS Average fleet count
10.5K
Previous year: 9.6K
+9.4%
DTS Average fleet count
10.8K
Previous year: 9.3K
+16.1%
Gross Profit
$454M
Previous year: $367M
+23.7%
Cash and Equivalents
$203M
Previous year: $684M
-70.4%
Free Cash Flow
$829M
Previous year: $1.22B
-31.9%
Total Assets
$12.9B
Previous year: $13.6B
-5.5%

Ryder

Ryder

Ryder Revenue by Segment

Forward Guidance

Ryder provided full year 2021 and fourth quarter 2021 forecasts. FY21 GAAP EPS is projected to be $8.60 - $8.70, and comparable EPS (non-GAAP) is expected to be $8.40 - $8.50. The company anticipates an ROE of 18% - 19% and free cash flow of $1.0B - $1.1B. For the fourth quarter, GAAP EPS is forecasted at $2.27 - $2.37, and comparable EPS (non-GAAP) is forecasted at $2.36 - $2.46.

Positive Outlook

  • Increased GAAP EPS forecast to $8.60 - $8.70 from $7.40 - $7.70
  • Increased comparable EPS (non-GAAP) forecast to $8.40 - $8.50 from $7.20 - $7.50
  • Expect to achieve adjusted ROE of 18% - 19%
  • Maintained cash flow from operating activities forecast of $2.2 billion
  • Increased free cash flow (non-GAAP) forecast to $1.0 billion - $1.1 billion

Challenges Ahead

  • Labor shortages are affecting current results in DTS and SCS.
  • Supply chain disruptions are impacting SCS automotive customers.
  • Unallocated Central Support Services (CSS) costs increased to $17 million from $8 million in the prior year, primarily due to higher compensation-related expenses.
  • Effective income tax rate from continuing operations was 24.3% as compared to 17.7% in the prior year.
  • Year-to-date operating cash flow remained at $1.7 billion, reflecting higher earnings, offset by higher working capital needs.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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