Weak guidance clips Ryder

|About: Ryder System, Inc. (R)|By:, SA News Editor

Ryder (NYSE:R) falls after setting guidance below the expectations of analysts.

The company sees FY17 EPS of $4.25 to $4.55 vs. $5.10 to $5.40 prior and $5.17 consensus.

Management cited weak rental demand and lower pricing on used vehicle sales as concerns.

Ryder outlook per CEO Robert Sanchez: "We expect improved rental utilization comparisons in the second half. Used vehicle sales results are anticipated to be below original expectations due to modestly lower pricing, reflecting continued high levels of inventory in the used vehicle market. We expect Ryder's used vehicle inventories to be near the midpoint of our target range by year end, which better positions us as we enter 2018."

Previously: Ryder misses by $0.02, beats on revenue (April 25)

Shares of Ryder are down 5.68% in premarket trading to $74.78.