Q2 2024 Ryder System Inc Earnings Call Transcript
Key Points
- Ryder System Inc (R) reported operating revenue of $2.6 billion in Q2 2024, up 10% from the prior year, primarily due to recent acquisitions.
- The company achieved a comparable EPS of $3.00, which, although down from $3.61 the previous year, exceeded internal forecasts.
- Ryder System Inc (R) increased its quarterly dividend by 14% and returned $207 million to shareholders through share repurchases and dividends year-to-date.
- The integration of recent acquisitions, Cardinal Logistics and Impact Fulfillment Services, is on track, contributing to growth and strengthening Ryder's market position.
- The company’s adjusted ROE for the trailing 12-month period was 16%, reflecting strong returns despite challenging market conditions.
- Comparable EPS from continuing operations decreased from $3.61 in the prior year to $3.00, reflecting weaker market conditions in used vehicle sales and rental.
- Rental utilization on the Powerfleet was 69%, down from 75% in the prior year, indicating weaker rental demand.
- Used vehicle sales market conditions continued to weaken, with used tractor proceeds declining 19% and used truck proceeds declining 27% year-over-year.
- The company’s inventory of used vehicles increased to 9,500 units, slightly above the targeted range, due to higher lease expirations.
- Economic uncertainty and extended freight downturn have caused some customers to delay decisions or downsize their fleets, impacting near-term contractual sales.
Good morning, and welcome to the Ryder System second-quarter 2024 earnings release conference call. (Operator Instructions) Today's call is being recorded. If you have any objections, please disconnect at this time.
I would now like to introduce Ms. Calene Candela, Vice President, Investor Relations for Ryder. Ms. Candela, you may begin.
Thank you. Good morning, and welcome to Ryder's second-quarter 2024 earnings conference call.
I'd like to remind you that during this presentation, you'll hear some forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to changes in economic, business, competitive, market, political, and regulatory factors. More detailed information about these factors and a reconciliation of each non-GAAP financial
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