Ryder’s quarterly earnings indicated a weak truck market, but the company’s focus on other segments beyond fleet rental activities continued to yield positive results. Despite the challenges, Ryder’s non-GAAP earnings per share of $2.14 surpassed expectations by 43 cents, with revenue of $3.1 billion exceeding consensus by $40 million. However, the $2.14 EPS was 67 cents lower than the previous year’s first quarter.
Investors responded positively to the news, with Ryder’s stock rising by 10.8% to $120.79 by midday. The company’s quarterly data reflects the fluctuating used truck market, with prices falling significantly in recent quarters. CEO Robert Sanchez noted that while prices had declined, they exceeded expectations and were still higher than in the previous quarter.
Ryder’s Fleet Management Solutions segment saw a decline in operating revenue and earnings before taxes, reflecting ongoing market challenges. However, other parts of the company, such as Supply Chain Solutions and Dedicated Transport Services, reported revenue growth. Despite a slight revision to its 2024 forecast, Ryder remains optimistic about its future performance and expects a modest recovery in the rental market in the second half of the year.
The integration of Cardinal Logistics into Ryder’s operations is also expected to bring positive results, with a significant increase in operating revenue anticipated once the integration is complete. Overall, Ryder’s focus on diversifying its business and enhancing efficiency is positioning the company for long-term success.
