Last week saw the newest quarterly earnings release from Ryder System, Inc. (NYSE:R), an important milestone in the company's journey to build a stronger business. Results were roughly in line with estimates, with revenues of US$3.1b and statutory earnings per share of US$2.27. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Our free stock report includes 1 warning sign investors should be aware of before investing in Ryder System. Read for free now.NYSE:R Earnings and Revenue Growth April 26th 2025

Following last week's earnings report, Ryder System's six analysts are forecasting 2025 revenues to be US$12.8b, approximately in line with the last 12 months. Statutory per share are forecast to be US$11.99, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of US$12.9b and earnings per share (EPS) of US$12.33 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

See our latest analysis for Ryder System

It might be a surprise to learn that the consensus price target was broadly unchanged at US$161, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Ryder System at US$175 per share, while the most bearish prices it at US$144. This is a very narrow spread of estimates, implying either that Ryder System is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Ryder System's revenue growth is expected to slow, with the forecast 0.9% annualised growth rate until the end of 2025 being well below the historical 9.2% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.3% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Ryder System.

Story Continues

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Ryder System. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Ryder System going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the  1 warning sign  we've spotted with Ryder System .

Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

View Comments