In This Article:
It's been a good week for Ryder System, Inc. (NYSE:R) shareholders, because the company has just released its latest full-year results, and the shares gained 5.3% to US$166. Ryder System reported in line with analyst predictions, delivering revenues of US$13b and statutory earnings per share of US$11.06, suggesting the business is executing well and in line with its plan. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
See our latest analysis for Ryder System
Taking into account the latest results, the current consensus from Ryder System's six analysts is for revenues of US$13.1b in 2025. This would reflect a modest 3.5% increase on its revenue over the past 12 months. Per-share earnings are expected to swell 12% to US$12.90. Before this earnings report, the analysts had been forecasting revenues of US$13.6b and earnings per share (EPS) of US$13.06 in 2025. The consensus seems maybe a little more pessimistic, trimming their revenue forecasts after the latest results even though there was no change to its EPS estimates.
The consensus has reconfirmed its price target of US$174, showing that the analysts don't expect weaker revenue expectations next year to have a material impact on Ryder System's market value. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Ryder System analyst has a price target of US$190 per share, while the most pessimistic values it at US$140. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Ryder System's revenue growth is expected to slow, with the forecast 3.5% annualised growth rate until the end of 2025 being well below the historical 9.2% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.6% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Ryder System.