GATX Corporation’s (GATX - Free Report) fourth-quarter 2019 earnings per share (excluding 23 cents from non-recurring items) came in at $1.36 per share, surpassing the Zacks Consensus Estimate by 35 cents. Adding to the bullishness, the bottom line of this Zacks Rank #3 (Hold) company surged 61.9% year over year. Earnings growth was aided by lower marine operating expenses. This stellar performance has pleased investors. As a result, the stock gained 9.4% to $82.35 on Jan 23.
Meanwhile, total revenues improved year over year, albeit marginally, to $356.7 million in the final quarter of 2019. Total expenses (on a reported basis) rose 3.6% to $286.7 million in the quarter.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Segmental Results
Profits in the Rail North America segment decreased to $61.1 million from the prior year’s $66.6 million. This downside mainly resulted from the 1.9% decline in segmental lease revenues to $214 million. The renewal lease rate change of the company’s Lease Price Index (LPI) was -9.1% in the reported quarter compared with the previous year’s -0.9%. Additionally, average lease renewal term for cars included in the LPI was 37 months compared with 43 months in the year-ago quarter.
In fact, Rail North America’s wholly-owned fleet had approximately 118,000 rail cars at the end of 2019. Fleet utilization was 99.3% compared with 99.4% at the end of 2018.
In the Rail International segment, profits increased 42.2% year over year to $22.9 million. Segmental profits were boosted by a 9.3% increase in lease revenues to $57.5 million.
Moreover, GATX Rail Europe’s fleet totaled 24,600 rail cars at the end of the year. Fleet utilization was 99.3% compared with 98.8% witnessed at the end of 2018.
In the Portfolio Management unit, profits climbed significantly year over year to $27.5 million, driven by the Rolls-Royce and Partner Finance affiliates’ buoyant performance. In addition, the American Steamship segment's profit jumped 57.7% to $19.4 million in the December-end quarter.
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GATX Corporation’s (GATX - Free Report) fourth-quarter 2019 earnings per share (excluding 23 cents from non-recurring items) came in at $1.36 per share, surpassing the Zacks Consensus Estimate by 35 cents. Adding to the bullishness, the bottom line of this Zacks Rank #3 (Hold) company surged 61.9% year over year. Earnings growth was aided by lower marine operating expenses. This stellar performance has pleased investors. As a result, the stock gained 9.4% to $82.35 on Jan 23.
Meanwhile, total revenues improved year over year, albeit marginally, to $356.7 million in the final quarter of 2019. Total expenses (on a reported basis) rose 3.6% to $286.7 million in the quarter.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Segmental Results
Profits in the Rail North America segment decreased to $61.1 million from the prior year’s $66.6 million. This downside mainly resulted from the 1.9% decline in segmental lease revenues to $214 million. The renewal lease rate change of the company’s Lease Price Index (LPI) was -9.1% in the reported quarter compared with the previous year’s -0.9%. Additionally, average lease renewal term for cars included in the LPI was 37 months compared with 43 months in the year-ago quarter.
In fact, Rail North America’s wholly-owned fleet had approximately 118,000 rail cars at the end of 2019. Fleet utilization was 99.3% compared with 99.4% at the end of 2018.
In the Rail International segment, profits increased 42.2% year over year to $22.9 million. Segmental profits were boosted by a 9.3% increase in lease revenues to $57.5 million.
Moreover, GATX Rail Europe’s fleet totaled 24,600 rail cars at the end of the year. Fleet utilization was 99.3% compared with 98.8% witnessed at the end of 2018.
In the Portfolio Management unit, profits climbed significantly year over year to $27.5 million, driven by the Rolls-Royce and Partner Finance affiliates’ buoyant performance. In addition, the American Steamship segment's profit jumped 57.7% to $19.4 million in the December-end quarter.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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