Logistics company Ryder System, Inc. (R) late Thursday lowered its second quarter earnings outlook, citing lower rental revenue, sending its shares plunging in premarket trading.
The Miami-based company said it now expects second quarter earnings to range from 90 to 95 cents per share, down significantly from its prior outlook of $1.07 to $1.12.
On average, Wall Street analysts expected $1.10 per share for the period.
A Ryder spokesperson commented, “Although commercial rental revenue has improved both year-over-year and seasonally, May results reflected lower rental growth than previously discussed.”
Ryder System shares were down $3.80, or -9.3%, in premarket trading Friday.
The Bottom Line
Shares of Ryder System (R) have a 2.85% dividend yield, based on last night’s closing stock price of $40.75. The stock has technical support in the $33-$35 price area. If the shares can firm up, we see overhead resistance around the $42-$45 price levels.
Ryder System, Inc. (R) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.