What Is Going On With These Two Companies Whose Stocks Are Falling Today?

Ryder System, Inc. (NYSE:R) lowered its third quarter EPS outlook to $1.72-$1.74 from the previous guidance of $1.82 – $1.87 and also cut full year EPS forecast to $6.14-$6.29 from $6.45-$6.55. The company cited, “greater than planned number of out-of-service vehicles during the quarter” and “used vehicle sales results also impacted earnings in the quarter, particularly in the month of September. The impact was due to 7% fewer than anticipated used power vehicles sold in the U.S., as well as moderating price growth”. Ryder shares are down more than 17% year to date but also trade at a reasonable forward P/E 10.3. Yesterday’s guidance warning could cause Ryder’s forward P/E to rise to 11-12 as analyst cut their estimates, but the company is still reasonably cheap given the good macroeconomic climate in the U.S.

Hedge funds were mixed on Ryder System, Inc. (NYSE:R) in the time period from April 1 to June 30. Although the total value of their holdings declined to $368.31 million (representing 7.90% of the float) from $398.71 million, the number of funds long Ryder increased to 32 from 27, and eight of Ryder’s top ten shareholders either increased their positions or established new stakes in the second quarter. Robert Bishop’s Impala Asset Management increased its position by 9% on the quarter to 793,901 shares, while Doug Gordon, Jon Hilsabeck and Don Jabro‘s Shellback Capital raised its stake by 884% to 506,778 shares.

Disclosure: None