Ryder System Inc. (R) isn't seeing a slowdown in logistics. This Zacks Rank #1 (Strong Buy) recently reported a record first quarter.

Ryder is a nearly $10 billion global logistics and transportation company. It provides supply chain, dedicated transportation and fleet management solutions to some of the top consumer brands, including the top 10 Fortune 500 food and beverage companies in the United States.

Big Beat In The First Quarter

On Apr 27, Ryder reported its first quarter 2022 results and blew by the Zacks Consensus by $1.21. Earnings were $3.59 versus the Zacks Consensus of just $2.38. It was the 5th consecutive earnings beat in a row.

It saw record first quarter results with all three of its business segments seeing double digit revenue growth.

Fleet Management Systems ("FMS") was up 22% to $2.2 billion versus $1.8 billion last year. Supply Chain Solutions ("SCS") jumped 10% to $1.28 billion from $1.16 billion in 2021.

Dedicated Transportation Solutions ("DTS") saw better-than-expected results gaining 25% to $296 million from $237 million.

Results exceeded expectations due to used vehicle sales and rental. Ryder generated record REO of 25% due to truck capacity constraints in the market, which benefited Fleet Management Systems, and from its continued ongoing initiatives to increase returns.

It's strategy to accelerate growth in SCS and DTS is paying off as they now represent approximately 50% of the company's revenue, up from 40% three years ago. Ryder anticipates the growth to continue in these two segments.

Previously announced SCS acquisitions are also performing well and are providing Ryder with enhanced capabilities in the fast-growing e-commerce fulfillment and multi-client warehousing.

Price increases were used to address "unusually high" labor cost increases. However, Ryder still expects SCS and DTS to achieve their high single-digit earnings targets in the second half.

Raised Full Year Earnings Guidance

Given the big beat in the first quarter, and continued bullish outlook in the logistics industry, it's not surprising that Ryder raised its full year earnings estimates.

It now expects 2022 earnings between $13.00 and $14.00 per share, up from prior guidance of $11.00 to $12.00.

4 estimates have been revised higher over the last week pushing the Zacks Consensus up to $13.49 from $11.70. That's earnings growth of 40.8% as Ryder made just $9.58 last year.

Shares Are Dirt Cheap

Like many stocks in 2022, Ryder shares are weak. They've fallen 13.8% year-to-date, which is similar to the decline of the S&P 500.

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Image Source: Zacks Investment Research

This has created a buying opportunity, however, as it's now dirt cheap.

Ryder trades with a forward P/E of just 5.2.

It also pays a dividend currently yielding a juicy 3.3%.

For investors looking for a value stock with rising earning estimates, Ryder should be on your short list.