Ryder System Q1 Results Top Estimates; Sees Q2 EPS Below Market View

(RTTNews) - Ryder System, Inc. (R), a commercial fleet management, transportation, and supply chain solutions, reported Tuesday that its first-quarter net income increased 5 percent to $56.2 million from last year's $53.3 million. Earnings per share were $1.05, higher than $1.00 a year ago.

Excluding certain items, comparable net income was $60.1 million or $1.12 per share, compared to last year's $57.3 million or $1.08 per share.

On average, 14 analysts polled by Thomson Reuters expected earnings of $1.05 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenue increased 4 percent to $1.63 billion from prior year's $1.57 billion. Analysts were looking for revenues of $1.60 billion.

Operating earnings increased 8 percent to $1.41 billion from $1.30 billion last year. Excluding foreign exchange, revenues grew 9 percent.

The company said higher revenues reflected higher revenue across all business segments, partially offset by negative impacts from foreign exchange.

Looking ahead, the company sees second quarter 2016 comparable earnings of $1.50 to $1.55 per share, while analysts expect $1.60 per share.

Citing the uncertain rental and used vehicle sales environment, the company maintained its full-year 2016 comparable earnings from continuing operations forecast of $6.10 to $6.30 per share. Analysts expect earnings of $6.14 per share.

Commenting on the company's 2016 outlook, Chairman and CEO Robert Sanchez said, "Overall, for the balance of the year, we forecast Ryder's contractual businesses to continue to grow in line with our prior expectations. We anticipate used vehicle sales results to be slightly better than our original forecast for the year."