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Textainer (TGH) Gears Up for Q2 Earnings: What's in Store?

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Textainer Group Holdings Limited (TGH - Free Report) is scheduled to report second-quarter 2021 earnings on Aug 5, 2021, after market close.

The Zacks Consensus Estimate for second-quarter earnings has been stable at $1.19 in the past 30 days. The consensus mark for revenues is currently pegged at $193.6 million, indicating a 34% increase from the year-ago quarter’s reported figure.

Against this backdrop, let’s take a look at the factors that might have shaped the company’s June-quarter performance.

With economic activities gaining pace as restrictions are being eased following increased vaccination, overall lease rental income is likely to have increased in the June quarter from the March quarter actuals.

The Zacks Consensus Estimate for second-quarter lease rental income indicates a 15.4% sequential increase. Lease rental income is likely to have increased sequentially for both owned and managed fleet, driven by factors like higher fleet size, utilization and average rental rate.

Operating costs might have risen in the June quarter due to higher general and administrative expenses. This is likely to have adversely impacted the bottom-line performance in the quarter.

Earnings Whispers

Our proven model does not 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. However, that is not the case here. 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 $1.19. 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 #5 (Strong Sell), currently.

Q1 Earnings Flashback

In the last reported quarter, this Hamilton, Bermuda-based lessor of intermodal containers delivered an earnings surprise of 18.4% with quarterly earnings (excluding 6 cents from non-recurring items) of $1.16 surpassing the consensus mark of 98 cents. The bottom line also expanded more than 100% on a year-over-year basis owing to low operating expenses.

Stocks to Consider

Investors interested in the broader Transportation sector may consider Eagle Bulk Shipping Inc. (EGLE - Free Report) , Genco Shipping & Trading Limited (GNK - Free Report) and Mesa Air Group, Inc. (MESA - Free Report) as these stocks possess the right combination of elements to beat on earnings this reporting cycle.

Eagle Bulk Shipping has an Earnings ESP of +5.98% and a Zacks Rank #3, currently. The company will release second-quarter earnings on Aug 5.

Genco Shipping& Trading has an Earnings ESP of +11.81% and a Zacks Rank of 1, presently. The company will announce second-quarter results on Aug 4.

Mesa Air Group has an Earnings ESP of +15.56% and is currently Zacks #3 Ranked. The company is set to release third-quarter fiscal 2021 results on Aug 9.

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