Ryder System Inc.’s stock R slid 2% in premarket trade Wednesday, after the supply chain transportation and fleet management company’s first-quarter earnings fell short of estimates in a continued weak freight market. Miami, Fla.-based Ryder posted net income of $139 million, or $2.94 a share, for the quarter, down from $176 million, or $3.35 a share, in the year-earlier period. Adjusted per-share earnings came to $2.81, below the $2.96 FactSet consensus. Revenue rose 3% to $2.952 billion, but also missed the $2.985 billion FactSet consensus. “Pricing actions benefited all segments, while revenue growth benefited earnings in dedicated and supply chain,” CEO Robert Sanchez said in a statement. “As anticipated, earnings decreased from prior-year record levels as market conditions in used vehicle sales and rental continued to normalize.” The company still expects 2023 earnings to be down from 2022 as “weak freight conditions throughout the year impact used vehicle sales and rental,” said CFO John Diez. The company is expecting revenue to rise 1% and adjusted EPS to range from $11.30 to $12.05. The FactSet consensus is for full-year EPS of $11.84. The stock is up 0.5% in the year to date, while the S&P 500 SPX has gained 6%.
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