Ryder System (R) NewsBite - Ryder Slashes Full-Year Earnings Prediction

Posted on Wednesday, July 23, 2008 3:34 PM

Ryder System Inc. (R) opened at 73.76. So far today, the stock has hit a low of 68.69 and a high of 74.60. R is now trading at 69.83, down 5.26 (-7.13%). The stock hit its 52 week high of 76.64 in May and set its 52 week low of 38.95 in November. The stock dropped through the second half of 2007, but has moved to the upside since the beginning of this year. Ryder System announced today its second-quarter profit slipped 3% to $62.9 million, mostly due to a one-time charge. The company posted earnings of $1.22 per share, while analysts expected a profit of $1.16 per share. Ryder also slashed its full-year earnings prediction. Technical indicators for the stock are bearish but improving while S&P gives R a neutral 3 STARS (out of 5) hold rating. If you’re looking for a hedged play on this stock, consider an August bear-call credit spread above the $75 range. R stock could rise up to 7.4% before expiration and this position would still be profitable. [RHF - Seven Summits Strategic Investments NewsBite]