Ryder System, Inc. (NYSE: R) took a sharp downturn after the markets closed on Monday following the release of updated guidance. The company revised its earnings guidance for the third quarter and full-year 2015 due to lower than expected earnings growth in its Fleet Management Solutions (FMS) business segment.

This revision is the result of a temporary execution issue, related to record fleet growth, which the Ryder expects to resolve in the fourth quarter, and less robust demand conditions in used vehicle sales. Performance in Ryder’s Dedicated Transportation Solutions (DTS) and Supply Chain Solutions (SCS) business segments is expected to remain generally in line with the previous forecast.

While the company blamed the disappointing results on temporary issues, many investors and economic watchers will probably be wondering if the slow global and domestic growth numbers are contributing to the weakness.

Overall Ryder now expects earnings per share (EPS) for the third quarter to be in the range of $1.68 to $1.70 compared to the consensus estimate from Thomson Reuters which calls for $1.86 in EPS. As for the fourth quarter, Ryder expects to have EPS in the range of $1.67 to $1.77 compared to the consensus estimate of $1.89 in EPS. Be advised the each quarter contains a $0.05 per share charge listed in a table as non-operating pension costs.

Robert Sanchez, Chairman and CEO of Ryder said:

We are confident that during the fourth quarter we will resolve the temporary execution issue related to our unprecedented growth. We have adjusted our technician labor model to accommodate this growth and are reducing out-of-service vehicles to a normalized level. The lower outlook also accounts for our expectations of the used vehicle sales environment.

In commercial rental, we anticipate continued strong demand, as evidenced by recent trends and supported by growth in the overall customer base. We are pleased that we continue to deliver increased year-over-year earnings, while also realizing strong top line revenue growth driven by secular outsourcing trends and the enhancements we’ve made to our sales and marketing efforts.

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Shares of Ryder closed Monday down 0.3% at $75.65 on its 52-week trading range of $69.55 to $100.64. Following the announcement, shares were down 6.2% at $71.00 in the after-hours trading session. The stock has a consensus analyst price target of $108.50.

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