Ryder System Inc (NYSE:R) reported a second-quarter FY23 revenue decline of 4.9% year-on-year to $2.88 billion, missing the analyst consensus of $3.05 billion.
Revenue from Fleet management solutions decreased by 10% to $1.45 billion, Supply Chain Solutions remained flat and Dedicated Transportation Solutions fell 2%.
Selling, general and administrative expenses decreased by 5% to $343 million.
EPS of $3.61 beat the analyst consensus of $2.91.
Ryder System held $218 million in cash and equivalents as of June 30, 2023. Net cash provided by operating activities for six months totaled $1.2 billion, driven by higher cash earnings and lower working capital needs.
Ryder Chairman & CFO Robert Sanchez said, “Achieving these results against a backdrop of weakening freight conditions and declining used vehicle prices highlights the effectiveness of our transformative changes.”
Outlook: Ryder raised its FY23 adjusted EPS outlook from $11.30 – $12.05 to $12.20 – $12.70 versus the consensus of $11.59.
The company sees FY23 operating revenue growth of ~2%, down from the prior outlook of ~4%.
R expects total revenue growth of ~(2%) versus the prior view of ~1%.
For Q3, the company sees adjusted EPS of $3.00 – $3.25, above the consensus of $2.90.
Price Action: R shares are trading higher by 6.85% at $98.08 on the last check Wednesday.
