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What's in Store for GATX Corporation (GATX) in Q1 Earnings?

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GATX Corporation (GATX - Free Report) is scheduled to report first-quarter 2023 results on Apr 25, before market open.

GATX has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in two of the preceding four quarters (missed twice), the average beat being 16.5%.

Let’s see how things are shaping up for GATX this earnings season.

GATX Corporation Price and EPS Surprise

GATX Corporation Price and EPS Surprise

GATX Corporation price-eps-surprise | GATX Corporation Quote

Q1 Expectations

The Zacks Consensus Estimate for first-quarter 2023 revenues is pegged at $354 million, indicating 11.8% growth year over year. The top line is likely to have been aided by a rise in lease revenues. Rail North America revenues might have been aided by higher lease revenues and higher remarketing income.

However, Rail International revenues might have been hurt by foreign currency exchange rate fluctuations. Portfolio Management revenues might have also been hurt by lower gains on asset dispositions at the Rolls-Royce and Partners Finance (RRPF) affiliates. Our estimates for first-quarter 2023 earnings indicate a 38% decline on a year-over-year basis.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for GATX 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 an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

GATX has an Earnings ESP of 0.00% and a Zacks Rank #3.

Highlights of Q4

GATX's earnings of $1.54 per share outpaced the Zacks Consensus Estimate of $1.38. However, the bottom line declined 2.5% year over year. Revenues of $322.7 million missed the Zacks Consensus Estimate of $328.9 million but improved 0.5% year over year.

Stocks to Consider

Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings this season.

Canadian National Railway Company (CNI - Free Report) has an Earnings ESP of +1.72% and a Zacks Rank #3. It will release first-quarter 2023 results on Apr 24. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company delivered a trailing four-quarter earnings surprise of 3.5%, on average. The Zacks Consensus Estimate for CNI’s first-quarter 2023 earnings has surged 18.3% year over year.

Copa Holdings (CPA - Free Report) has an Earnings ESP of +13.66% and sports a Zacks Rank #1. It will release first-quarter 2023 results on May 10.

The Zacks Consensus Estimate for CPA’s first-quarter 2023 earnings has improved more than 100% year over year.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
 


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