Ryder's stock keeps rallying after big earnings beat and raised guidance

Shares of Ryder System Inc. /zigman2/quotes/208674852/composite R +2.39% rallied 1.2% toward a sixth-straight gain in morning trading Wednesday, after the trucking and fleet management services company reported a first-quarter profit that beat expectations by a wide margin, and lifted its full-year outlook well above forecasts. The company swung to net income of $50.8 million, or 95 cents a share, from a loss of $109.6 million, or $2.10 a share, in the year-ago period. Excluding nonrecurring items, such as discontinued operations and restructuring costs, adjusted earnings per share came to $1.09, beating the FactSet consensus of 58 cents. Revenue rose 2.8% to $2.22 billion, above the FactSet consensus of $2.14 billion, as fleet management solutions (FMS) revenue was roughly flat at $1.34 billion but beat expectations. "FMS results were significantly better than expected in lease and rental as well as used vehicle sales, driven by a robust freight environment and our actions to improve returns," said Chief Executive Robert Sanchez. The company raised its 2021 adjusted EPS guidance range to $5.50 to $5.90 from $4.15 from $4.65, above the FactSet consensus of $4.50. The stock has run up 25.8% year to date, while the Dow Jones Transportation Average /zigman2/quotes/210598063/delayed DJT +3.16% has climbed 22.3% and the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +1.34% has advanced 10.7%.