Ryder stock rallies after big profit beat, an upbeat outlook and plans for $300 million ASR

Shares of Ryder System Inc. rallied 5.2% in premarket trading Wednesday, after the truck rental company reported fourth-quarter earnings that rose above expectations, provided an upbeat full-year outlook and announced plans for a $300 million accelerated stock repurchase (ASR) program. Net income increased seven-fold to $181.1 million, or $3.36 a share, from $25.6 million, or 48 cents a share, in the year-ago period. Excluding non-comparable items, adjusted earnings per share rose to $3.52 from 83 cents, well above the FactSet consensus of $2.48. Revenue grew 17.5% to $2.60 billion, beating the FactSet consensus of $2.49 billion. For 2022, the company expects adjusted EPS of $11.00 to $12.00, compared with the FactSet consensus of $9.09, and expects revenue growth of approximately 10%, while the FactSet revenue consensus of $10.38 billion implies 7.4% growth. “e expect a strong used vehicle sales and rental environment to continue in 2022, slowly moderating in the second half of the year,” said Chief Executive Robert Sanchez. The stock has dropped 11.4% over the past three months through Tuesday, while the S&P 500 has shed 4.9%.

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