Ryder System ( NYSE: R ) shares moved sharply upward in premarket action on Wednesday after reporting stronger than expected earnings and signaling further acceleration into year-end.
The Miami-based transportation company reported $4.45 in earnings per share for the third quarter, $0.79 above analyst expectations. Meanwhile, a nearly 24% jump in revenue from the prior year quarter to $3.04B rose $80M above analyst estimates. Of particular note, supply chain solutions ( SCS ) surged to over $1.2B, rising over 50% from the prior year quarter.
“Accelerating growth in SCS and [Dedicated Transportation Solutions] (DTS) is a key driver of our strategy to create long-term shareholder value,” CEO Robert Sanchez said. “Our recent acquisitions in fast-growing e-commerce fulfillment and multiclient warehousing continue to contribute to earnings growth in SCS.”
He added that the Q3 results increased management’s bullishness on the full-year, with improved rental and used vehicle sales performance also underpinning performance. The company now forecasts adjusted EPS to range from $15.65 to $15.85, up significantly from a previous guide of $14.30 to $14.80. Meanwhile, adjusted ROE forecasts were increased to a 26% to 27% range from a prior 25% to 26% expectation.
Shares of Ryder System ( R ) rose as much as 6% in premarket on light volume.
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Ryder stock rides higher on earnings beat, raised guidance