John. Thanks,
above year XX. comparable Turning $X.XX effects. on of million forecast a EPS in $XXX above prior prior loss year We're COVID forecast prior to and EPS our which We're now a our forecast $X.XX. Page our to full raising providing $XXX to $XXX well of of to included $X.XX $X.XX, third year, outlook of to quarter from a $XXX significantly EPS million the also comparable
as automotive chip Third quarter vehicles earnings lower levels well plant due the expected used impact SCS estimated expected shortage gains to from fewer sequentially, to lower to the inventory be sold due on down retooling. are and reflecting as
are performance the continue expected that XXXX economic a current vehicle and results. of Lease, higher policy. the and conditions of key freight strong tax forecast and sales Our continuation assumes used into rental drivers
activity our lease pricing improved and benefit actions, operating from expect performance. increased sales to We
future to for million vehicle impact depreciation resulting XXXX. quarter year-over-year sold FMS, or $XX in the or on strategic outsourcing $XX forecasting pricing, higher growth of in gains benefit investments In year, in value technology remain and in third aimed in decline, due including fewer from driving continue quarterly We're trend low not around vehicles pricing growth any inventory the rental approximately and gains the estimate of last-mile offset This reflecting changes expect also adjustments, accelerating chain, residual valuation a expected and losses strong. We e-commerce opportunities. balance include to of support sales the sale in to from is impact products delivery, does by at supply million potential new partially used levels. to prior benefit
under We labor remain fleets to with pain opportunities this Private point, drive expect additional for will markets to expect also pressure, sales are particularly dedicated offering. our continue drivers. which experiencing we
We In exceed in employer and also chain and anticipated high costs on supply choice. drivers track growth we're dedicated awareness new our as the initiatives labor our be by and higher brand on are focused impacted are retain technology strategic campaign. to dedicated, of meet attract to be well to targets. single-digit as and or Supply revenue returns and chain investments
supply the margins to quarter second of back of impacts from levels We automotive due the the decline OEMs. and the chain to year in by plant retooling half expect chip shortages certain
to some shortage Finally, expected vehicles in delay FMS. of the is semiconductor delivery the
activity offset of of in delays expect year by well the to lease utilization We first pricing. impact the and delivery as rental the half higher be as sales higher
a our actions achieve target. increase reminder returns like to brief planned provide Slide to XX. and ROE Turning our regarding I'd to
vehicle sales XXXX, of past continue market we're on on actions pricing As X shown changes. and through page. depreciation impact highlights to key channel. prior in from XX the expanded used conditions progress levels related our the the value higher biggest estimate the retail making is prior residual capitalizing trends moving areas to on we're driver Slide and the expected chart, those are Strong
the year-over-year forward Revenue going our additional digits, In mid-single reflecting earnings opportunity benefit levels. expiring We depreciation leased and continue expect are fleet declining planned initiatives. our by we impact pricing vehicles increased leases continue. from pricing and at In pricing actions rental replace trends. these strong benefit on year-to-date growth by pricing as rental, FMS, the strong to from results demand higher to performance lease supported with
updated growth expect delivered businesses. end actions also include through million additional in Our and $XX initiative multiyear strategic more return signed $XX portfolio locations pricing in maintenance our of and in view XXXX The a savings investing all signed of higher taken. in the of of year, improve savings annual as leases than an in returns. in Slide The XXXX. XX this to majority track cost achieve leases, Cost expected target X% million XXXX, of an at perform lease in of result our last on are return. chain provides exception higher dedicated only performance the to above actions the to will pricing. the with those underperforming we expected power we our lease the in our fleet be supply that of the exiting We're will assets initiatives Substantially, accelerate in fleet. balance in represent our long-term XXXX are cohort replaced of
since XXXX portfolio over As expect vintage we our are our pricing a changes increase higher returns cost we years. portfolio more the lease returning and actions well turns as now, result incorporating to and as on analytics-driven recent the to to pricing as continue the of
ROE long-term we cycle. to focused encouraged business returns remain the that additional expect our ROE XXXX, of over exceed to - generate to of target actions on Although we XX% in we position XX% are our action taking
our to include future will heavy-duty to downturn. we we're in of we're expiration of maintaining to this pursue tractors mitigate strategy to capital contract through number need balance growing susceptible as such, well the higher In our an for implementing the downturn. the actions disciplined that asset to view class As that by the enable better reduce as less sell replacing used returns fleet, opportunities to sheet to up as return returns certain and M&A actions freight as leased planning we vehicles truck In downturns. and a vehicles on cyclical a cycle mix These asset during shift ChoiceLease, order from rental, share investments to impacts repurchases. we're light- prior flexibility strategic impact allocation during us medium-duty
residual we of sales, expected analysis values of changes. entire life and availability vehicles This our completed by quarter, of and condition, among reviewing other included, technology equipment fleet, an expectancies which class, our factors,
part used downturn of potential cyclical vehicle on future a in As prices. this factored also we review,
reminder, a years, lowered we where value of fleet for in As been recent below XX X estimates have estimates last significantly level residual tractor these used years. a to prices in the only entire the our
our on if primarily recent or analysis, reduction potential downturn, in early even in intended during in XXXXs XXXX. change based values, most like However, did tractor we probability made trough the and depreciation to of is an additional pricing tractors. further residual levels returns they accelerated the need certain to This reduce a modest cyclical losses historical for for
changes by $XX We prepared of morning. the our total increase XXXX representing expect year. in approximately will million, depreciation this these X% expense depreciation remarks concludes That for expense
I'll it that note we later to file to to [Operator Instructions]. line this up to the turn please open XX-Q our the for time, questions. today. Before questions, over expect At go we operator
