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Textainer (TGH) to Report Q1 Earnings: What's in Store?

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Textainer Group Holdings Limited (TGH - Free Report) is scheduled to report first-quarter 2021 earnings numbers on May 11, after market close. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share has remained stable at 98 cents over the past 60 days.

Against this backdrop, let’s take a look at the factors that are likely to have impacted the company’s March-quarter performance.

We expect Textainer’s first-quarter performance to have been aided by the gradual increase in trade volumes and container demand. The favorable shift in consumer spending is also likely to have boosted the company’s first-quarter show.

Lease rental income is likely to have increased in the March quarter owing to the uptick in fleet size, utilization and average rental rate. Notably, the Zacks Consensus Estimate for the metric is currently pegged at $192 million for first-quarter 2021, indicating 19.2% growth from the figure reported in the December quarter.

Lease rental income is derived from owned and managed fleet. The Zacks Consensus Estimate for leased rental income (owned fleet) is currently pegged at $169 million, suggesting a 15.8% increase from the number reported sequentially. The Zacks Consensus Estimate for leased rental income (managed fleet) is currently pegged at $23.1 million, implying a 50% surge from the sequentially reported number.

Gain on the sale of owned fleet containers, net, is likely to have decreased in the to-be-reported quarter due to reduction in the number of containers sold. Notably, the Zacks Consensus Estimate for the metric is currently pegged at $7.5 million for the March quarter, hinting at a decrease of 4.1% from the figure reported in the December quarter.

What Does the Zacks Model Say?

Our proven model does not conclusively predict an earnings beat for Textainer this time around. The combination of a positive  Earnings ESP  and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of a positive surprise, which is not the case here as shown below. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: Textainer has an Earnings ESP of 0.00% as the Most Accurate Estimate is in line with the Zacks Consensus Estimate of 98 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Textainer carries a Zacks Rank #3, currently.

Highlights of Q4 Earnings

Textainer’searnings (excluding 6 cents from non-recurring items) of 81 cents per share surpassed the Zacks Consensus Estimate of 50 cents. Quarterly earnings also soared more than 100% on a year-over-year basis.

Snapshots of Sectorial Releases

Even though transportation stocks have struggled this earnings season so far due to coronavirus woes, the bottom-line results of some companies surpassed estimates. Below we present three such industry winners.

Landstar System (LSTR - Free Report) reported first-quarter 2021 earnings of $2.01 per share, surpassing the Zacks Consensus Estimate of $1.61. Additionally, revenues of $1,287.5 million outperformed the Zacks Consensus Estimate of $1,142.5 million.

Triton International Limited’s (TRTN - Free Report) first-quarter 2021 earnings (excluding 1 cent from non-recurring items) of $1.91 per share surpassed the Zacks Consensus Estimate of $1.70. Moreover, the bottom line surged 105.4% year over year owing to strong trade volumes and container demand.

Norfolk Southern Corporation’s (NSC - Free Report) first-quarter 2021 earnings of $2.66 per share surpassed the Zacks Consensus Estimate of $2.55. Moreover, the bottom line improved 3.1% year over year on lower costs.

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