After gaining nearly 4% on Friday, Ryder Systems could come under some selling pressure today. Earlier this morning, the company lowered its third-quarter earnings guidance to a range of $1.12 to $1.14 per share from $1.20 to $1.23 per share. The firm is blaming soft demand for its commercial rentals, as well as lower pricing and higher carrying costs associated with used vehicles.
According to a press release, the company noted that Economic conditions have softened considerably in more industries beyond those related to housing and construction. Ryder added it expects softer economic conditions to continue through the fourth quarter, and lowered its full-year forecast to a range of $4.10 to $4.15 per share from $4.30 to $4.35 per share.
Technically, the shares have steadily declined under the resistance of their 10-day and 20-day moving average since early August - dropping more than 14% during this time frame. On Friday, the stock's rally was capped by the latter of these 2 trendlines. Assuming that today's news doesn't prompt a gap below the 48 level, it could provide a modicum of support for R. This region has held as support for the equity since April 2006.