Integrated logistics and transportation solutions, Ryder Systems Inc. (R) is set to release its fourth-quarter 2013 results before the opening bell on Feb 4, 2014.
In the last quarter, the company delivered a 1.39% earnings surprise. Let’s see how things are shaping up for this announcement.
Factors to be Considered this Quarter
We are encouraged by Ryder’s organic growth across its business line. Striking performance by the company’s new product business and strong supply chain volumes bode well. The Florida-based company expects enhanced offerings in contractual product lines in the fleet management segment with a newer lease fleet and various maintenance initiatives to boost earnings.
However, an extended freight recession has forced the company to downsize its lease and contract maintenance customers. Some lost business and lower volume expectations are expected to impact the company’s supply chain business. Stiff competition also remains a threat to Ryder as it could create downward pressure on rates and affect margins.
Earnings Whispers
Our proven model does not conclusively show that Ryder is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, this is not the case here as elaborated below.
Zacks Rank: RyderSystem carries a Zacks Rank #2.
Zacks ESP: This is because the Most Accurate estimate stands at $1.28 while the Zacks Consensus Estimate is higher at $1.29. This leads to an ESP of -0.78% for Ryder. We caution investors against the stock going into the earnings announcement.
Other Stocks to Consider
Here are some companies to consider as our model shows these have the right combination of elements to post an earnings beat this quarter.
Trinity Industries Inc. (TRN) has earnings ESP of +2.13% and carries a Zacks Rank #1.
American Railcar Industries Inc. (ARII) with earnings ESP of +1.01% and Zacks Rank #2.
XPO Logistics Inc. (XPO) has earnings ESP of +10.35% and carries a Zacks Rank #3.
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