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GATX Q1 Earnings Exceed Expectations, Revenues Fall Short
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GATX Corporation’s (GATX - Free Report) first-quarter 2023 earnings (excluding 4 cents from non-recurring items) of $2.20 per share outpaced the Zacks Consensus Estimate of $1.44. The bottom line fell 6% year over year. Revenues of $338.9 million missed the Zacks Consensus Estimate of $354 million but improved 7% year over year.
Lease revenues of $302 million grew 6.6% year over year, while Marine operating revenues decreased 43.5% to $3.5 million. Revenues from other sources rose 23.2% to $33.4 million.
Total expenses (on a reported basis) declined 4.6% to $246.1 million.
Profits in the Rail North American segment decreased to $95.2 million from $120.4 million a year ago. The renewal lease rate change of GATX’s Lease Price Index (LPI) was 34.3% in the reported quarter compared with the year-ago quarter’s 9.3%. The average lease renewal term for cars included in LPI was 37 months compared with 30 months a year ago.
Rail North America’s wholly-owned fleet consisted of approximately 110,000 rail cars at the end of Mar 31. Fleet utilization was 99.3%, flat from first-quarter 2022 end.
GATX Corporation Price, Consensus and EPS Surprise
In the Rail International segment, profits fell 5.6% year over year to $23.5 million in the first quarter. Results were unfavorably impacted by foreign currency exchange rate fluctuations partially offset by more railcars on lease.
GATX Rail Europe’s fleet totaled around 28,500 rail cars at the end of the quarter under review. Fleet utilization was 98.5% in the reported quarter compared with 99% at first-quarter 2022 end.
The Portfolio Management unit reported a segmental profit of $28.3 million in the first quarter against a segmental loss of $3.9 million in the year-ago quarter.
As of Mar 31, GATX had cash and cash equivalents of $177.4 million compared with $303.7 million at the end of December 2022.
GATX still anticipates full-year 2023 earnings to be between $6.50 per share and $6.90 per share. The midpoint of the guidance ($6.70) is below the Zacks Consensus Estimate of $6.71.
Q1 Performance of Some Other Transportation Companies
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) first-quarter 2023 earnings of $1.89 per share missed the Zacks Consensus Estimate of $2.04 and declined 17.5% year over year.
JBHT’s total operating revenues of $3,229.58 million also lagged the Zacks Consensus Estimate of $3,434.4 million and fell 7.4% year over year. The downfall was due to declines in the volume of 25% in Integrated Capacity Solutions (ICS), 5% in Intermodal (JBI) and 17% in Final Mile Services (FMS), respectively. A decline of 17% in revenue per load in Truckload (JBT) also added to the woes. Revenue declines in ICS, JBI, FMS and JBT were partially offset by Dedicated Contract Services revenue growth of 13%. JBHT’s total operating revenues, excluding fuel surcharges, decreased 10.2% year over year.
Delta Air Lines’ (DAL - Free Report) first-quarter 2023 earnings (excluding 82 cents from non-recurring items) of 25 cents per share missed the Zacks Consensus Estimate of 29 cents. Volatile fuel price and unfavorable weather conditions led to this downtick. DAL reported a loss of $1.23 per share a year ago, dull in comparison to the current scenario, as air-travel demand was not so buoyant then.
DAL reported revenues of $12,759 million, which missed the Zacks Consensus Estimate of $12,767.4 million. Driven by higher air-travel demand, total revenues increased 36.49% on a year-over-year basis.
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GATX Q1 Earnings Exceed Expectations, Revenues Fall Short
GATX Corporation’s (GATX - Free Report) first-quarter 2023 earnings (excluding 4 cents from non-recurring items) of $2.20 per share outpaced the Zacks Consensus Estimate of $1.44. The bottom line fell 6% year over year. Revenues of $338.9 million missed the Zacks Consensus Estimate of $354 million but improved 7% year over year.
Lease revenues of $302 million grew 6.6% year over year, while Marine operating revenues decreased 43.5% to $3.5 million. Revenues from other sources rose 23.2% to $33.4 million.
Total expenses (on a reported basis) declined 4.6% to $246.1 million.
Profits in the Rail North American segment decreased to $95.2 million from $120.4 million a year ago. The renewal lease rate change of GATX’s Lease Price Index (LPI) was 34.3% in the reported quarter compared with the year-ago quarter’s 9.3%. The average lease renewal term for cars included in LPI was 37 months compared with 30 months a year ago.
Rail North America’s wholly-owned fleet consisted of approximately 110,000 rail cars at the end of Mar 31. Fleet utilization was 99.3%, flat from first-quarter 2022 end.
GATX Corporation Price, Consensus and EPS Surprise
GATX Corporation price-consensus-eps-surprise-chart | GATX Corporation Quote
In the Rail International segment, profits fell 5.6% year over year to $23.5 million in the first quarter. Results were unfavorably impacted by foreign currency exchange rate fluctuations partially offset by more railcars on lease.
GATX Rail Europe’s fleet totaled around 28,500 rail cars at the end of the quarter under review. Fleet utilization was 98.5% in the reported quarter compared with 99% at first-quarter 2022 end.
The Portfolio Management unit reported a segmental profit of $28.3 million in the first quarter against a segmental loss of $3.9 million in the year-ago quarter.
As of Mar 31, GATX had cash and cash equivalents of $177.4 million compared with $303.7 million at the end of December 2022.
GATX still anticipates full-year 2023 earnings to be between $6.50 per share and $6.90 per share. The midpoint of the guidance ($6.70) is below the Zacks Consensus Estimate of $6.71.
Currently, GATX carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Q1 Performance of Some Other Transportation Companies
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) first-quarter 2023 earnings of $1.89 per share missed the Zacks Consensus Estimate of $2.04 and declined 17.5% year over year.
JBHT’s total operating revenues of $3,229.58 million also lagged the Zacks Consensus Estimate of $3,434.4 million and fell 7.4% year over year. The downfall was due to declines in the volume of 25% in Integrated Capacity Solutions (ICS), 5% in Intermodal (JBI) and 17% in Final Mile Services (FMS), respectively. A decline of 17% in revenue per load in Truckload (JBT) also added to the woes. Revenue declines in ICS, JBI, FMS and JBT were partially offset by Dedicated Contract Services revenue growth of 13%. JBHT’s total operating revenues, excluding fuel surcharges, decreased 10.2% year over year.
Delta Air Lines’ (DAL - Free Report) first-quarter 2023 earnings (excluding 82 cents from non-recurring items) of 25 cents per share missed the Zacks Consensus Estimate of 29 cents. Volatile fuel price and unfavorable weather conditions led to this downtick. DAL reported a loss of $1.23 per share a year ago, dull in comparison to the current scenario, as air-travel demand was not so buoyant then.
DAL reported revenues of $12,759 million, which missed the Zacks Consensus Estimate of $12,767.4 million. Driven by higher air-travel demand, total revenues increased 36.49% on a year-over-year basis.