Ryder Earnings Report: Mixed Signals on Used Vehicle Market
Ryder System's Q4 2024 earnings, released on Wednesday, indicate significant year-over-year changes in used car sales, a key metric for the used vehicle market.
Used Vehicle Sales
* Ryder sold 4,700 units during the quarter, a decline from 7,200 in Q4 2023.
* Used vehicle prices declined by 13% for tractors and 12% for trucks year-on-year, but the rate of decline has slowed.
Fleet Management Solutions (FMS)
* Unit sales in the FMS segment fell sequentially by 3% for trucks and 2% for tractors.
* Rental demand declined across most Ryder divisions.
* FMS revenue remained flat year-on-year.
Other Segments
* Contract logistics (SCS) revenue increased by 3% year-on-year.
* Dedicated Transportation Solutions (DTS) revenue surged by 39%, largely due to the Cardinal Logistics acquisition.
Financial Performance
* Full-year 2024 GAAP earnings: $11.06, up from $8.73 in 2023.
* 2025 GAAP earnings guidance: $12.40-$13.40.
* Revenue growth estimated at approximately 2%.
Market Reaction
* Ryder stock rose by 2% following the earnings release.
* The stock has gained about 35% over the past year.