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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.
Revenue by Segment
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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