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Dec 31, 2021
Ryder Q4 2021 Earnings Report
Reported significantly improved results in Fleet Management Solutions (FMS).
Key Takeaways
Ryder System, Inc. reported record fourth-quarter and full-year comparable earnings, driven by strong FMS results. The company generated a record ROE of 20.9% for the full year, reflecting strong demand and pricing in used vehicle sales and rental. Ryder intends to enter into a $300 million accelerated share repurchase program.
GAAP EPS from continuing operations was $3.36, compared to $0.48 in the prior year.
Comparable EPS (non-GAAP) from continuing operations was $3.52, compared to $0.83 in the prior year.
Total revenue reached $2.6 billion, up 17% year-over-year.
Operating revenue (non-GAAP) increased by 14% to $2.1 billion.
Ryder
Ryder
Ryder Revenue by Segment
Revenue by Segment
Supply Chain Solutions Revenue
CapyFin.comDedicated Transport Revenue
CapyFin.com Forward Guidance
Ryder expects a strong used vehicle sales and rental environment to continue in 2022, slowly moderating in the second half of the year. The company plans to continue to benefit from its lease pricing initiative and expects its supply chain and dedicated businesses to achieve their high single-digit earnings targets in the second half of the year.
Positive Outlook
- Total revenue growth of approximately 10%.
- Operating revenue growth (non-GAAP) of approximately 10%.
- GAAP EPS forecast of $10.40 - $11.40.
- Comparable EPS (non-GAAP) forecast of $11.00 - $12.00.
- Net cash provided by operating activities from continuing operations forecast of approximately $2.3 billion.
Challenges Ahead
- Free cash flow (non-GAAP) forecast of $200 million - $300 million.
- Capital expenditures of $2.7 billion - $2.8 billion.
- Debt-to-equity of approximately 220%.
- Tax rate in the high 20's.
- Labor shortages and wage increases as well as automotive supply chain disruptions
Revenue & Expenses
Visualization of income flow from segment revenue to net income