We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Strong Liquidity Aids GATX Corp (GATX) Amid Low Lease Revenues
Read MoreHide Full Article
We have recently updated a report on GATX Corporation (GATX - Free Report) .
We are positive about GATX's buyout of the world’s fourth-largest tank container lessor company — Trifleet Leasing Holding — in December 2020. Through the purchase, GATX strengthened its railcar leasing operations. The buyout of the Dutch company, worth approximately €175 million, has further widened its customer base across the globe.
GATX's sound liquidity position is encouraging. At the end of first-quarter 2021, the company’s cash and cash equivalents stood at $959 million, higher than its short-term borrowings of $19.6 million. This implies that the company has sufficient cash to meet short-term debt obligations.
However, GATX’s first-quarter results were affected by low profitability recorded in the Portfolio Management unit. Segmental profit fell 68.7% to $6.1 million on a year-over-year basis. The downside was primarily due to lower lease revenues and lower remarketing income at the Rolls-Royce and Partners Finance affiliates.
In the first quarter of 2021, profits in the Rail North America segment declined by 8.8% to $65.7 million on a year-over-year basis. The downside was primarily due to lower lease revenues.
Long-term (three to five years) expected earnings per share growth rate for Landstar, Triton and Herc Holdings is projected at 12%, 10% and 42.9%, respectively.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Image: Bigstock
Strong Liquidity Aids GATX Corp (GATX) Amid Low Lease Revenues
We have recently updated a report on GATX Corporation (GATX - Free Report) .
We are positive about GATX's buyout of the world’s fourth-largest tank container lessor company — Trifleet Leasing Holding — in December 2020. Through the purchase, GATX strengthened its railcar leasing operations. The buyout of the Dutch company, worth approximately €175 million, has further widened its customer base across the globe.
GATX's sound liquidity position is encouraging. At the end of first-quarter 2021, the company’s cash and cash equivalents stood at $959 million, higher than its short-term borrowings of $19.6 million. This implies that the company has sufficient cash to meet short-term debt obligations.
However, GATX’s first-quarter results were affected by low profitability recorded in the Portfolio Management unit. Segmental profit fell 68.7% to $6.1 million on a year-over-year basis. The downside was primarily due to lower lease revenues and lower remarketing income at the Rolls-Royce and Partners Finance affiliates.
In the first quarter of 2021, profits in the Rail North America segment declined by 8.8% to $65.7 million on a year-over-year basis. The downside was primarily due to lower lease revenues.
Zacks Rank & Stocks to Consider
GATX currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Transportation sector include Landstar System, Inc. (LSTR - Free Report) , Triton International Limited and Herc Holdings Inc. (HRI - Free Report) . Landstar and Herc Holdings sport a Zacks Rank #1 (Strong Buy), while Triton carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term (three to five years) expected earnings per share growth rate for Landstar, Triton and Herc Holdings is projected at 12%, 10% and 42.9%, respectively.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2021 today >>