Ryder System, Inc. (R) reported fourth-quarter 2024 earnings per share (EPS) of $3.45, which surpassed the Zacks Consensus Estimate of $3.42 and improved 16.9% year over year, reflecting higher earnings across all business segments.
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Total revenues of $3.18 billion lagged the Zacks Consensus Estimate of $3.36 billion. The top line improved 5.5% year over year. Operating revenues of $2.61 million grew 7% year over year, reflecting recent acquisitions.
Ryder System, Inc. Price, Consensus and EPS Surprise
Ryder System, Inc. Price, Consensus and EPS Surprise
Ryder System, Inc. price-consensus-eps-surprise-chart | Ryder System, Inc. Quote
Ryder chairman and chief executive officer, Robert Sanchez, stated, "Ryder delivered strong results in 2024 and year-over-year earnings growth during the fourth quarter, despite ongoing freight market headwinds. This marks the first quarter in the last eight with year-over-year comparable earnings growth. These results were driven by double-digit earnings growth in each of the segments, reflecting the strength of our contractual lease, supply chain, and dedicated businesses. Our ability to generate ROE of 16% during this extended freight cycle downturn continues to demonstrate consistent execution and the resilience of our transformed business model.”
Segmental Results
Fleet Management Solutions: Total revenues of $1.48 billion inched up marginally by 0.3% year over year. Operating revenues amounted to $1.30 million, up 3% year over year, owing to higher ChoiceLease revenues, partially offset by lower rental demand.
Supply-Chain Solutions: Total revenues of $1.34 billion increased 3% year over year, reflecting increased operating revenues. Operating revenues rose 4% year over year to $1.01 billion, owing to acquisitions, partially offset by lower sales activity.
Dedicated Transportation Solutions: Total revenues of $615 million and operating revenues of $472 million increased 39% and 46%, year over year, respectively, owing to acquisition.
Liquidity
Ryder exited the fourth quarter with cash and cash equivalents of $154 million compared with $162 million at the end of the prior quarter. R’s total debt (including the current portion) was $7.77 billion at the fourth-quarter end compared with $7.60 billion at the end of the prior quarter.
R’s Outlook
Ryder chief financial officer, Cristina Gallo-Aquino, stated, "We expect the positive momentum in our contractual businesses to continue into 2025, contributing to higher earnings in all business segments. The high end of our 2025 forecast range assumes continued contractual earnings growth and a very modest improvement in rental demand later in the year. We remain well-positioned to benefit from a cycle upturn in all our business segments and are confident that secular growth trends continue to support long-term revenue and earnings growth."
For the first quarter of 2025, Ryder expects adjusted EPS in the range of $2.30-$2.55. The Zacks Consensus Estimate of $2.37 lies within the guidance.
For 2025, Ryder expects adjusted EPS in the range of $13.00-$14.00. The Zacks Consensus Estimate of $13.68 lies within the guidance.
Management anticipates total revenues to increase by almost 2%. Operating revenues (adjusted) are forecasted to increase 2%. Adjusted ROE (return on equity) is suggested in the 17%-18% band. Net cash from operating activities is projected to be $2.5 billion. Adjusted free cash flow is expected to be in the range of $300-$400 million.Capital expenditures are estimated to be $2.7 billion.
Currently, Ryder carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Q4 Performances of Other Transportation Companies
Delta Air Lines DAL reported fourth-quarter 2024 earnings (excluding 56 cents from non-recurring items) of $1.85 per share, which surpassed the Zacks Consensus Estimate of $1.76. Earnings increased 44.5% on a year-over-year basis due to low fuel costs.
DAL’srevenues of $15.56 billion surpassed the Zacks Consensus Estimate of $14.99 billion and increased 9.4% on a year-over-year basis, driven by strong holiday travel demand. Adjusted operating revenues (excluding third-party refinery sales) totaled $14.44 billion, up 5.7% year over year. Passenger revenues, which accounted for 82.4% of total revenues, increased 5% year over year at $12.82 billion.
J.B. Hunt Transport Services (JBHT) reported fourth-quarter 2024 earnings per share of $1.53, which fell short of the Zacks Consensus Estimate of $1.62. However, the bottom line increased 4.1% on a year-over-year basis.
JBHT’s total operating revenues of $3.15 billion narrowly beat the Zacks Consensus Estimate of $3.13 billion but declined 4.8% year over year. The decline was mainly due to lower fuel surcharge revenues and yield pressure in its Intermodal segment.
JBHT’s fourth-quarter 2024 operating revenues of $2.78 billion, excluding fuel surcharge revenue, decreased 2% from the year-ago reported quarter. Total operating income for the reported quarter increased 2% year over year to $207 million.
Alaska Air Group, Inc. (ALK) reported solid fourth-quarter 2024 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Quarterly earnings per share of 97 cents outpaced the Zacks Consensus Estimate of 47 cents and improved more than 100% on a year-over-year basis. The reported figure exceeded the guided range of 40-50 cents.
ALK’s bottom line benefitted from solid revenue growth, cost and operational performance throughout the quarter and holiday travel periods. ALK also benefitted from a renegotiation of certain interest payments and favorability in its fourth-quarter tax rate.
ALK’s operating revenues of $3.53 billion beat the Zacks Consensus Estimate of $3.51 billion. The top line jumped 38.4% year over year, with passenger revenues accounting for 89.9% of the top line and increasing 37% owing to continued recovery in air-travel demand.
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