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Dec 31, 2020
Ryder Q4 2020 Earnings Report
Reported significantly higher year-over-year earnings, made progress on initiatives to improve returns, and generated $1.6 billion of free cash flow.
Key Takeaways
Ryder System, Inc. reported Q4 2020 results with total revenue of $2.2 billion, a decrease of 3%. GAAP EPS from continuing operations was $0.48, compared to a loss of $(1.02) in the prior year. Comparable EPS from continuing operations was $0.83, including a $0.38 one-time expense for frontline employee bonuses.
Total revenue decreased by 3% to $2.2 billion, reflecting lower fuel revenue.
Operating revenue remained unchanged at $1.8 billion, as higher revenues in supply chain were offset by lower revenues in fleet management and dedicated businesses.
GAAP EPS from continuing operations was $0.48, compared to a loss of $(1.02) in the prior year, primarily due to improved results in used vehicle sales, lease, and rental.
Comparable EPS from continuing operations was $0.83, including a $0.38 one-time expense for frontline employee bonus, versus a loss of $(0.01) in the prior year.
Ryder
Ryder
Ryder Revenue by Segment
Revenue by Segment
Supply Chain Solutions Revenue
CapyFin.comDedicated Transport Revenue
CapyFin.com Forward Guidance
Ryder provided full year 2021 guidance, including GAAP EPS forecast of $4.18 - $4.68 and comparable EPS forecast of $4.15 - $4.65. They also forecast operating cash flow of $2.2 billion and free cash flow of $400M - $700M.
Positive Outlook
- Expect improving economic conditions and continued secular trends that favor outsourcing.
- Expect higher contractual sales activity based on an improved deal pipeline.
- Operating revenue growth in SCS and DTS is expected to be within the high-single-digit target range.
- FMS growth is expected to be near the lower end of the mid-single digit target range.
- Used vehicle market pricing is anticipated to modestly improve throughout the year.
Challenges Ahead
- The 2021 market environment remains uncertain and may be impacted by developments related to COVID-19 and other factors.
- Benefits from higher lease pricing and our maintenance cost-savings initiative are expected to be partially offset by a smaller lease fleet.
- Depreciation expense impact from prior residual value estimate changes
- Smaller lease fleet
- Used vehicle market pricing is anticipated to modestly improve throughout the year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income