Ryder System (R) Stock Forecast & Price Target

Ryder System Inc. has demonstrated significant financial improvements, with earnings before tax (EBT) increasing by 267% year-over-year, attributed primarily to recent acquisitions and higher operating revenue. The company's operating revenue saw consistent growth, increasing by 10% year-over-year, driven by new business, improved pricing strategies, and higher volumes, while ChoiceLease revenue also reported a 9% year-over-year increase, with approximately half of this growth being organic. Additionally, the sale of 7,200 used vehicles in the quarter reflects robust demand and operational efficiency, further supporting a positive outlook for the company's financial performance.

Ryder System Inc has experienced a significant decline in earnings before taxes (EBT), which fell by 48% year-over-year to $134 million, contributing to negative sentiments surrounding the stock. The company's EBT margins have also contracted across its business segments, with a decline of 480 basis points to 4.2%, falling below the long-term target of high-single digits. Additionally, utilization rates in the Fleet Management Solutions segment were below expectations, leading Ryder to revise its full-year revenue growth forecast to be roughly flat year-over-year on an organic basis.