Tags: Ryder System | R | trucking | transports | logistics | stocks

Ryder System Awaits the Rebound

By    |   Friday, 17 Jun 2011 05:07 PM

Ryder System (R) handles cargo transportation and supply chain management for other companies so that they can focus more on what they do best. Like other companies recovering from recession, Ryder's annual revenue and net income have remained below the peak levels of 2007. But the Miami-based cargo company boosted its bottom line in 2010 and expects better profitability again this year.

Ryder in spring raised its forecast of 2011 earnings per share to the range of $2.90 to $3.00 from its previous guidance of $2.80 to $2.90. Earnings in 2010 rose to $118.1 million, or $2.25 per share, from $61.9 million, or $1.11 per share, in 2009.

Revenue increased to $5.14 billion last year from $4.89 billion in 2009. Ryder has three main business segments: offering commercial trucks for lease and rent, helping other companies manage their supply chains, and providing both trucks and drivers to certain corporate clients under dedicated-carriage contracts.

"We expect continuing strong revenue and earnings performance from organic growth in many areas of our business and increasing contributions from recent acquisitions," Gregory Swienton, chairman and chief executive officer of Ryder, said in a statement April 26.

First-quarter revenue grew to $1.43 billion, a 17 percent increase from $1.22 billion in the same period last year, due to a mix of improved used-vehicle sales volume, better demand for commercial truck rentals, and business acquisitions. Net income increased in the first quarter to $25.1 million, or 48 cents per share, from $12.3 million, or 23 cents per share, in the same period last year.

Looking for recovery

In June, a majority of analysts following Ryder recommended buying the company's stock and a sizable minority had neutral opinions, recommending neither accumulation nor disposal of the stock.

Zacks Investment Research gave Ryder stock a buy rating in a June 9 report. "We believe Ryder remains well positioned to benefit from organic growth as well as acquisitions," Zacks reported, citing the company's range of financial latitude, thanks to its "healthy" balance sheet.

Investment firm Piper Jaffray, on the other hand, raised its price target for Ryder to $53 from $52 in June but maintained its neutral rating on the stock.

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Ryder System (R) handles cargo transportation and supply chain management for other companies so that they can focus more on what they do best. Like other companies recovering from recession, Ryder's annual revenue and net income have remained below the peak levels of 2007....
Ryder System,R,trucking,transports,logistics,stocks
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2011-07-17
Friday, 17 Jun 2011 05:07 PM
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