Transportation and supply manager Ryder System (R) took a beating on Friday, tumbling 13% after it cut its second quarter and full year earnings forecasts.
The company cut its second quarter EPS guidance range to $0.90-$0.95, from $1.07-$1.12� and its full-year guidance to $3.65-$3.85, from $4.02-$4.12.
On Thursday, Ryder Systems cited weaker-than-expected demand for its services coupled with �unusually high� costs to fund its employee medical benefits as reasons for the revision.
In the report, Ryder Chairman and Chief Executive Officer Greg Swienton said, “We are responding with timely and appropriate business adjustments and cost management initiatives to address economic headwinds that are expected to continue through the remainder of the year.”
Following the news, some analysts were bearish on the company and lowered their ratings, but RW Baird analyst Benjamin J. Hartford kept the company at Outperform and chose to accentuate the positive.
�Encouragingly, second-quarter lease demand trends in line with expectations, [and] used truck prices stable,� wrote Hartford. �Weak commercial rental utilization will remain a near-term drag on earnings-per-share and investor sentiment, but stable rental demand trends into fleet reductions and continued leasing growth should support improved 2013 results, a potential catalyst for the stock.�
– Grace L. Williams
No comments:
Post a Comment