A month has gone by since the last earnings report for Ryder System, Inc. R. Shares have lost about 5.4% in that time frame, underperforming the market.

Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Third Quarter Earnings

Ryder System’s  third-quarter 2017 earnings (excluding 22 cents from non-recurring items) of $1.33 per share beat the Zacks Consensus Estimate of $1.29. However, the bottom line declined 20.4% on a year-over-year basis.

Ryder System reported total revenue of $1,848.5 million, which surpassed the Zacks Consensus Estimate of $1,806.4 million. Revenues increased 7.2% on a year-over-year basis with growth being witnessed in all segments.

Segment Results

Fleet Management Solutions: Total revenue was $1.20 billion, up 4% year over year. Operating revenues (revenues excluding fuel) came in at $1.03billion, up 3% year over year. Segmental results were aided by an increase in lease revenues on the back of a larger average fleet size.

Dedicated Transportation Solutions: Total revenue came in at $272 million, up 4% from the year-ago quarter. Operating revenues (excluding fuel and subcontracted transportation) inched up 1% year over year to $198 million.

Supply Chain Solutions: Total revenue in the quarter under review was $496 million, up 19% year over year. Operating revenues (revenues excluding fuel and subcontracted transportation) increased 9% year over year to $376 million.

Liquidity

Ryder System exited the third quarter with cash and cash equivalents of $65.3 million compared with $58.8 million at the end of 2016. The company had total debt of $5,349.2 million compared with $5,391.3 million at the end of 2016.

Guidance

The company now expects 2017 adjusted earnings in the band of $4.46-$4.56 per share compared with the previous range of $4.38-$4.58. It expects fourth-quarter 2017 adjusted earnings per share in the band of $1.31-$1.41. Additionally, the company expects free cash flow of $250 million for full year 2017.

How Have Estimates Been Moving Since Then?

Following the release, investors have witnessed an upward trend in fresh estimates. There have been two revisions higher for the current quarter compared to one lower. While looking back an additional 30 days, we can see even more upward momentum. There have been five moves up in the last two months.

Ryder System, Inc. Price and Consensus

Ryder System, Inc. Price and Consensus | Ryder System, Inc. Quote

VGM Scores

At this time, Ryder System's stock has an average Growth Score of C, however its Momentum is doing a bit better with a B. The stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Based on our scores, the stock is primarily suitable for value investors while also being suitable for those looking for momentum and to a lesser degree growth.

Outlook

While estimates have been broadly trending upward for the stock, the magnitude of these revisions has been net zero. Notably, the stock has a Zacks Rank #3 (Hold). We expect in-line returns from the stock in the next few months.

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