Ryder System Earnings: Double-Digit Growth for Fifth Straight Quarter

S&P 500 (NYSE:SPY) component Ryder System Inc. (NYSE:R) reported net income above Wall Street’s expectations for the second quarter. Ryder System is a global provider of transportation and supply chain management solutions.

Investing Insights: Is TV the Next Bullish Catalyst for Apple’s Stock?

Ryder System Inc. Earnings Cheat Sheet

Results: Net income for Ryder System Inc. rose to $46.7 million (91 cents per share) vs. $40 million (77 cents per share) in the same quarter a year earlier. This marks a rise of 16.7% from the year-earlier quarter.

Revenue: Rose 3.3% to $1.56 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Ryder System Inc. reported adjusted net income of $1 per share. By that measure, the company beat the mean estimate of 93 cents per share. Analysts were expecting revenue of $1.59 billion.

Quoting Management: Ryder Chairman and CEO Greg Swienton said, “In the second quarter, Ryder continued to deliver solid year-over-year increases including 9% higher earnings and 6% growth in revenue, despite an uneven and challenging demand environment. Second quarter results were somewhat better than expected in our most recent forecast, reflecting stronger used vehicle pricing, lower maintenance costs, as well as lower discretionary spending. In addition, we are pleased that our contractual full service lease and supply chain offerings continued to perform well and in line with expectations. We have taken actions and made a number of timely adjustments that not only contributed to our results in the second quarter, but will better position our business going forward.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 36.6% and in the fourth quarter of the last fiscal year, the figure rose 29.6%.

Revenue has increased for four quarters in a row. Revenue increased 7.8% to $1.54 billion in the first quarter. The figure rose 17.3% in the fourth quarter of the last fiscal year from the year earlier and climbed 19.3% in the third quarter of the last fiscal year from the year-ago quarter.

The company has now beaten estimates the last two quarters. In the first quarter, it topped expectations with net income of 59 cents versus a mean estimate of net income of 58 cents per share.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the third quarter has moved down from $1.25 a share to $1.15 over the last sixty days. For the fiscal year, the average estimate has moved down from $4.08 a share to $3.74 over the last thirty days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

Don’t Miss These Hot Additional Stories:

The Dow is NOT Lovin’ McDonald’s Right Now>>

SILVER: A Metal of Sunken Treasure and Champions>>

Will New Apple Products PUMP UP Shares?