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Sep 30, 2023

Ryder Q3 2023 Earnings Report

Reported strong returns in a weak freight environment and raised full-year guidance.

Key Takeaways

Ryder reported a decrease in total revenue to $2.9 billion but an increase in operating revenue to $2.4 billion. GAAP EPS was $3.44, while comparable EPS was $3.58. The company raised its full-year comparable EPS forecast to $12.60 - $12.85 and adjusted ROE forecast to 18% - 19%.

GAAP EPS from continuing operations was $3.44, compared to $4.82 in the prior year.

Comparable EPS (non-GAAP) from continuing operations was $3.58, compared to $4.45 in the prior year.

Total revenue was $2.9 billion, compared to $3.0 billion in the prior year.

Operating revenue (non-GAAP) was $2.4 billion, up 1%.

Total Revenue
$2.92B
Previous year: $3.04B
-3.7%
EPS
$3.58
Previous year: $4.45
-19.6%
Rental utilization
75%
Previous year: 83.2%
-9.9%
Gross Profit
$587M
Previous year: $619M
-5.2%
Cash and Equivalents
$159M
Previous year: $456M
-65.2%
Total Assets
$15.3B
Previous year: $14.5B
+5.7%

Ryder

Ryder

Ryder Revenue by Segment

Forward Guidance

Ryder expects to achieve earnings and return targets throughout the cycle, despite weakening freight conditions and used vehicle pricing.

Positive Outlook

  • FY23 Comparable EPS (non-GAAP) is expected to be $12.60 - $12.85
  • FY23 Operating Revenue Growth (non-GAAP) is expected to be ~2%
  • FY23 Net Cash from Operating Activities from Continuing Operations is expected to be ~$2.5B
  • FY23 Free Cash Flow (non-GAAP) is expected to be ~$100M
  • Adjusted ROE is expected to be 18% - 19%

Challenges Ahead

  • Total Revenue Growth is expected to be ~(2%)
  • FY23 GAAP EPS (includes ~$3.96 cumulative currency translation charge for FMS UK exit) is expected to be $8.44 - $8.69
  • Capital Expenditures are expected to be ~$3.2B
  • Debt-to-Equity is expected to be ~220%
  • 4Q23 GAAP EPS is expected to be $2.45 - $2.70

Revenue & Expenses

Visualization of income flow from segment revenue to net income