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Dec 31, 2023
Ryder Q4 2023 Earnings Report
Ryder reported strong Q4 2023 results driven by its balanced growth strategy in a challenging freight environment.
Key Takeaways
Ryder's Q4 2023 results showed a GAAP EPS of $2.74 compared to $4.06 in the prior year, and a comparable EPS (non-GAAP) of $2.95 compared to $3.89 in the prior year. Total revenue was $3.0 billion, slightly down from $3.1 billion in the prior year. The company's performance reflects weaker market conditions in used vehicle sales and rental, offset by improved Supply Chain Solutions results.
GAAP EPS from continuing operations was $2.74, compared to $4.06 in the prior year.
Comparable EPS (non-GAAP) from continuing operations was $2.95, compared to $3.89 in the prior year.
Total revenue reached $3.0 billion, a slight decrease from $3.1 billion in the prior year.
Operating revenue (non-GAAP) increased to $2.4 billion, up 2% year-over-year.
Ryder
Ryder
Ryder Revenue by Segment
Revenue by Segment
ChoiceLease Revenue
CapyFin.comCommercial rental Revenue
CapyFin.comSelectCare & other Revenue
CapyFin.comSupply Chain Solutions Revenue
CapyFin.comDedicated Transport Revenue
CapyFin.com Forward Guidance
Ryder expects to generate ROE in the mid-teens and anticipates earnings growth in its contractual lease, dedicated, and supply chain businesses for 2024.
Positive Outlook
- Contractual lease, dedicated, and supply chain businesses are expected to deliver earnings growth.
- All businesses remain well-positioned to benefit from the cycle upturn.
- Expect to generate ROE in the mid-teens.
- Operating revenue is expected to increase by approximately 13%, including recent acquisitions.
- Net cash provided by operating activities from continuing operations of $2.4 billion.
Challenges Ahead
- First quarter is expected to represent the most challenging year-over-year comparison.
- Free cash flow (non-GAAP) of negative $275 - $375 million.
- Capital Expenditures ~$3.3B
- Debt-to-Equity ~240%
- Historically the first quarter has been our lowest earnings quarter
Revenue & Expenses
Visualization of income flow from segment revenue to net income