Ryder System Inc. beat analysts’ expectations when the Miami-based company announced net income increased 51% in the third quarter.
Ryder’s results exceeded Wall Street’s expectations of $1.63 per share. The truck leasing company also posted a 17% revenue increase to $2.16 billion, compared with $1.85 billion in the same period a year ago. Analysts’ expectations for Ryder’s revenue were $2.11 billion.
The company has topped consensus revenue estimates in each of the past four quarters.
“We are pleased to again deliver year-over-year pretax earnings growth, which was at the high end of our expectations. This quarter’s comparable pre-tax earnings improvement was driven by revenue growth in all segments and the benefit of cost actions taken earlier in the year,” Ryder CEO Robert Sanchez said. “We delivered double-digit revenue growth with strong increases in all three business segments, benefiting from new outsourcing wins and a favorable freight environment.
“Ryder’s largest product line, ChoiceLease, grew organically by 5,600 vehicles year-to-date. We continue to successfully penetrate nonoutsourced markets and are also seeing expansions with current customers. We are on track for another record sales year in 2018, driven by ChoiceLease and Dedicated Transportation Solutions, positioning us well for accelerating contractual revenue growth.”
Revenue performance in Ryder’s business segments:
- Ryder’s Fleet Management Solutions, which provides vehicle leasing and truck rental, contract maintenance and fuel services, increased revenue to $1.34 billion, compared with $1.20 billion in the year-earlier period.
- Dedicated Transportation Solutions, which provides trucks and drivers under contract to shippers on an exclusive basis, increased revenue to $341 million, compared with $272 million in 2017.
- Supply Chain Solutions, which includes transportation management and freight brokerage, warehousing and distribution, order fulfillment and freight bill payment services, increased revenue to $629 million, compared with $496 million last year.
Ryder Supply Chain Solutions ranks No. 12 on the Transport Topics Top 100 list of the largest for-hire carriers in North America and No. 7 on the Transport Topics Top 50 list of the largest logistics companies in North America.