Ryder Stock Barely Moves Higher Since Q3 Earnings Release

Core Viewpoint - Ryder System, Inc. reported better-than-expected earnings for Q3 2024, leading to a 0.6% increase in share price since the earnings release on October 24, 2024 [1] Financial Performance - Quarterly earnings per share (EPS) were $3.44, exceeding the Zacks Consensus Estimate of $3.39, but down 3.9% year over year due to weaker market conditions in rental and used vehicle sales [2] - Total revenues reached $3.16 billion, falling short of the Zacks Consensus Estimate of $3.36 billion, but improved by 8.3% year over year [3] - Operating revenues of $2.59 million grew by 9% year over year, attributed to recent acquisitions [3] Segmental Results - Fleet Management Solutions generated total revenues of $1.47 billion, down 1% year over year, while operating revenues increased by 1% to $1.28 million due to higher ChoiceLease revenues [4] - Supply-Chain Solutions saw total revenues rise by 10% year over year to $1.31 billion, driven by recent acquisitions [4] - Dedicated Transportation Solutions reported total revenues of $633 million, a 41% increase year over year, with operating revenues up 49% to $486 million, also due to acquisitions [5] Liquidity & Capital Expenditures - Ryder ended Q3 with cash and cash equivalents of $162 million, slightly down from $164 million in the previous quarter, while total debt increased to $7.60 billion from $7.53 billion [6] - The company generated $629 million in net cash from operating activities, with free cash flow at $147 million and capital expenditures of $598 million [6] Outlook - For Q4 2024, Ryder expects adjusted EPS in the range of $3.32-$3.52, with the Zacks Consensus Estimate at $3.69 [7] - The updated guidance for 2024 estimates adjusted EPS between $11.90 and $12.10, with the prior view being $11.90 and $12.40 [7] - Total revenues are anticipated to increase by nearly 7%, down from a prior estimate of 8%, while operating revenues are still forecasted to rise by 8% [8]