Transportation company Ryder System Inc. (R) Monday lowered its earnings outlook for the third quarter and full year 2015 due to lower than expected earnings growth in its Fleet Management Solutions division. Following the news, shares of the company slipped over 6 percent in the after-hours trading.
The company said it is due to a temporary execution issue, related to record fleet growth, which Ryder expects to resolve during the fourth quarter, and less robust demand conditions in used vehicle sales.
For the third quarter, Ryder now expects comparable earnings of $1.72 to $1.74 per share, down from prior outlook of $1.82 to $1.87 per share. Analysts polled by Thomson Reuters currently estimate earnings of $1.86 per share for the quarter. Analysts estimates typically exclude one-time items.
The company expects comparable fourth quarter earnings of $1.72 to $1.82 per share.
The company now sees full-year 2015 comparable earnings of $6.17 to $6.29 per share, down from a prior range of $6.45 to $6.55 per share. Analysts currently estimate earnings of $6.49 per share for 2015.
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