Ryder System Inc R reported second-quarter FY24 sales growth of 10% year-on-year to $3.18 billion, missing the analyst consensus estimate of $3.24 billion.

Revenue from Fleet management solutions increased by 1% to $1.478 billion, Supply Chain Solutions climbed 14% to $1.341 billion and Dedicated Transportation Solutions jumped 44% to $635 million.

Selling, general and administrative expenses increased by 7.3% to $368 million. Adjusted EPS of $3.00 beat the analyst consensus of $2.87.

Ryder System held $164 million in cash and equivalents as of June-end. Operating cash flow for six months totaled $1.1 billion, with a free cash flow of $71 million.

Ryder Chairman & CEO Robert Sanchez said, “Comparable EPS were above our forecast primarily reflecting better-than-expected ChoiceLease results. ROE of 16% demonstrated the increased resilience of our transformed business model and is in line with our expectations for the latter stage of a freight-cycle downturn.”

Outlook: Ryder lowered its FY24 operating revenue growth to about 8% from the previously expected ~10% growth.

Ryder tightened its FY24 adjusted EPS forecast from $11.75 – $12.50 to $11.90 – 12.40 versus an estimate of $12.04.

For third-quarter, Ryder sees adjusted EPS of $3.30 – $3.50 against the consensus of $3.39.

Price Action: R shares are trading higher by 2.96% at $133.73 at the last check Thursday.