Ryder System Inc ( R ) shares are trading higher after the company reported first-quarter FY24 sales growth of 5% year-on-year to $3.098 billion, beating the analyst consensus estimate of $3.062 billion.

Revenue from Fleet management solutions decreased by 3% to $1.45 billion, Supply Chain Solutions increased 8% to $1.3 billion and Dedicated Transportation Solutions jumped 24% to $563 million.

Selling, general and administrative expenses increased by 4.1% to $378 million.

EPS of $2.14 beat the analyst consensus estimate of $1.71.

Ryder System ( R ) held $234 million in cash and equivalents as of March-end. Net cash provided by operating activities for three months totaled $526 million, with a free cash flow of $13 million.

Ryder Chairman & CEO Robert Sanchez said, “The outperformance in the quarter was driven by better-than-expected used vehicle results and benefits from our ongoing maintenance cost savings initiative.”

Outlook: Ryder revises FY24 adjusted EPS outlook from $11.50 – $12.50 to $11.75 – $12.50 versus the consensus of $11.70.

Ryder Chief Financial Officer John Diez said, “We are raising the lower end of our full-year forecast to reflect the outperformance in the quarter, partially offset by a more modest rental upturn than initially expected.”

Meanwhile, the company slashed its FY24 total revenue growth outlook to about 10% from about 13%.

Ryder currently sees net cash provided by operating activities from continuing operations of ~$2.4 billion and free cash flow (non-GAAP) of negative $(175) million – $(275) million

For the second quarter, the company sees adjusted EPS of $2.75 – $2.95, against the consensus of $2.83.

Price Action: R shares are trading higher by 10% at $119.91 at the last check Tuesday.