Ryder System Sees Q1, 2016 Earnings Below View; To Buy Back Shares

(RTTNews) - While reporting its financial results for the fourth quarter today, Ryder System, Inc. (R) provided earnings outlook for the first quarter and fiscal 2016 below analysts' expectations. The company said its board of directors has authorized a new share repurchase program to buy back up to two million shares.

For the first quarter of 2016, Ryder forecast comparable earnings in a range of $1.03 to $1.08 per share, compared with $1.08 per share in the year-ago period.

On average, analysts polled by Thomson Reuters expect the company to report earnings of $1.16 per share for the quarter. Analysts' estimates typically exclude special items.

For fiscal 2016, Ryder forecast comparable earnings from continuing operations of $6.10 to $6.30 per share, compared with $6.13 per share in 2015. Operating revenue for the full-year 2016 is forecast to be up 5 percent to about $5.8 billion and total revenue is forecast to be up 6 percent to approximately $7.0 billion.

Analysts expect the company to report earnings of $6.59 per share for the year on revenues of $6.86 billion.

Ryder Chairman and CEO Robert Sanchez said, "In 2016, we expect to deliver another year of solid revenue growth. We are forecasting stable to modestly higher earnings assuming a very weak used tractor sales market and a soft freight environment."

The company's board of directors has authorized a new share repurchase program to repurchase up to two million shares to mitigate the dilutive impact of shares issued under the company's employee stock plans.

Ryder expects to begin purchasing shares under the program during the second half of 2016. The new program replaces the company's previous anti-dilutive program, which expired in December 2015.