The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Ryder System met expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share expanded significantly.
Gross margins dropped, operating margins dropped, and net margins grew.
Ryder System tallied revenue of $1.54 billion. The 11 analysts polled by S&P Capital IQ foresaw revenue of $1.54 billion. Sales were 17% higher than the prior-year quarter's $1.31 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.97. The 13 earnings estimates compiled by S&P Capital IQ forecast $0.97 per share on the same basis. GAAP EPS of $0.93 for Q4 were 29% higher than the prior-year quarter's $0.72 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 45.5%, 70 basis points worse than the prior-year quarter. Operating margin was 5.8%, 70 basis points worse than the prior-year quarter. Net margin was 3.1%, 30 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.53 billion. On the bottom line, the average EPS estimate is $0.58.
Next year's average estimate for revenue is $6.41 billion. The average EPS estimate is $4.07.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 137 members out of 169 rating the stock outperform, and 32 members rating it underperform. Among 55 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 51 give Ryder System a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ryder System is outperform, with an average price target of $64.56.
Over the decades, small-cap stocks like Ryder System have produced market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: 2 Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Ryder System to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.