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Ryder Gears Up to Report Q3 Earnings: Is a Beat in the Cards?

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Ryder System, Inc.(R - Free Report) is scheduled to report third-quarter 2024 results on Oct. 24, before market open.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Ryder has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 12.37%.

Let’s see how things have shaped up for Ryder this earnings season.

R’s Q3 Expectations

The Zacks Consensus Estimate for Ryder’s third-quarter 2024 revenues is pegged at $3.37 billion, indicating 15.2% growth year over year. The top line is likely to have been aided by revenue growth in all business segments.

The Zacks Consensus Estimate for Fleet Management Solutions revenues is pegged at $1.52 billion, indicating a 2.1% increase from the year-ago reported figure. Higher operating revenues are likely to have aided the segment.

The Zacks Consensus Estimate for Supply-Chain Solutions revenues is pegged at $1.39 billion, indicating a 16.5% uptick from the year-ago reported figure.Higher operating revenues and higher subcontracted transportation costs passed through to customers should have aided the segment. 

The Zacks Consensus Estimate for Dedicated Transportation Solutions revenues is pegged at $714.86 million, indicating a 59.5% surge from the year-ago reported figure.Contributions from the Cardinal Logistics acquisition might have aided the segment.

On the flip side, Ryder’s bottom line continues to grapple with weaker market conditions in rental and used vehicle sales. Notably, the Zacks Consensus Estimate for R’s third-quarter 2024 earnings has been revised downward by 2% in the past 90 days to $3.39 per share. Further, the consensus mark implies a 5.3% decline from the year-ago actuals. The consensus mark of $3.39 lies within the company guidance of $3.30-$3.50.

What Our Model Says for Ryder

Our proven model predicts an earnings beat for Ryder this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Ryder has an Earnings ESP of +1.18% and a Zacks Rank #3.

Ryder System, Inc. Price and EPS Surprise

Ryder System, Inc. Price and EPS Surprise

Ryder System, Inc. price-eps-surprise | Ryder System, Inc. Quote

Ryder’s Q2 Highlights

Ryder's second-quarter 2024 earnings per share of $3 surpassed the Zacks Consensus Estimate of $2.88. However, the bottom line plunged 16.9% year over year, reflecting weaker market conditions in rental and used vehicle sales, partially offset by higher earnings in contractual lease, supply chain and dedicated businesses.

Total revenues of $3.18 billion lagged the Zacks Consensus Estimate of $3.25 billion The top line improved 10% year over year. Operating revenues of $2.56 million grew 10% year over year, reflecting recent acquisitions and contractual revenue growth, partially offset by lower commercial rental revenue in Fleet Management Solutions.

Stocks to Consider

Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

C.H. Robinson (CHRW - Free Report) has an Earnings ESP of +5.14% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks.

CHRW is scheduled to report third-quarter 2024 earnings on Oct. 30. Low operating costs are expected to have aided CHRW’s performance in the to-be-reported quarter.

The Zacks Consensus Estimate for third-quarter earnings has been revised 1.9% upward in the past 60 days. CHRW’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters and missed once, the average beat being 7.3%.

American Airlines (AAL - Free Report) has an Earnings ESP of +32.87% and a Zacks Rank #2.

AAL is scheduled to report third-quarter 2024 results on Oct. 24, before market open.AAL has an impressive earnings surprise history. The company's earnings surpassed the Zacks Consensus Estimate in three of the preceding four quarters (missing the mark once). The average beat is 103.2%.

The Zacks Consensus Estimate for AAL’s third-quarter 2024 earnings has been revised upward in excess of 200% in the past 30 days and is currently pegged at 13 cents per share.

Norfolk Southern Corporation (NSC - Free Report) has an Earnings ESP of +0.02% and a Zacks Rank #3.

NSC is scheduled to report third-quarter 2024 results on Oct. 22, before market open. NSC has a disappointing earnings surprise history, having lagged the Zacks Consensus Estimate in three of the preceding four quarters (surpassed once), the average miss being 0.45%.

The Zacks Consensus Estimate for NSC’s third-quarter 2024 earnings has been revised 0.6% upward in the past 90 days.

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