Thursday, 1 November 2012

Buy Rider Systems For Cheap Valuations, Dividends And Cost Cutting Measures


A leader in trucking transportation and logistics, Ryder Systems (R) topped earnings and EPS estimates, but missed revenue targets. It is yet again an example of an industrial that has missed the sales estimate, but made higher than expected profits. This solidifies Qineqt's stance that industrials this year are trimming their cost structures, but have not found enough sales coming their way to provide impressive results on the earnings release. Earlier on, Harley-Davidson (HOG), the manufacturer of stylish motorbikes also missed revenue estimates, but exceeded EPS expectations. Similarly, Caterpillar (CAT), the giant equipment manufacturer, Norfolk Southern (NSC), U.S.-based railroad, Chicago Bridge & Iron (CBI), the engineering & construction company, and several other manufacturers missed sales expectations but exceeded EPS estimates. The positive news for Ryder investors was that the company raised its full year outlook to $3.93-$3.98, from the prior guidance of $3.75-$3.9.

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