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GATX Q2 Earnings Surpass Estimates, Revenues Fall Short
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GATX Corporation’s (GATX - Free Report) second-quarter 2023 earnings per share (EPS) of $1.73 outpaced the Zacks Consensus Estimate of $1.61. The bottom line grew 1.7% year over year. Revenues of $343.2 million missed the Zacks Consensus Estimate of $356.9 million but improved 9.7% year over year.
Lease revenues of $308.6 million grew 8.3% year over year, while Marine operating revenues decreased 61.5% to $2 million. Revenues from other sources rose 44.2% to $32.6 million.
Total expenses (on a reported basis) rose 7.8% to $248.8 million.
GATX Corporation Price, Consensus and EPS Surprise
Profits in the Rail North American segment increased to $79.3 million from $53.1 million a year ago. The renewal lease rate change of GATX’s Lease Price Index (LPI) was 33.1% in the reported quarter compared with the year-ago quarter’s 6.1%. The average lease renewal term for cars included in LPI was 61 months compared with 51 months a year ago.
Rail North America’s wholly-owned fleet consisted of approximately 109,500 rail cars at June 2023-end. Fleet utilization was 99.3%, flat sequentially.
In the Rail International segment, profits fell 3.5% year over year to $27.3 million in the second 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 28,800 rail cars at the second-quarter end. Fleet utilization was 96.9% in the reported quarter compared with 99.9% at the end of second-quarter 2022.
The Portfolio Management unit reported a segmental profit of $26.6 million in the second quarter against a segmental loss of $15.7 million in the year-ago quarter.
As of Jun 30, 2023, GATX had cash and cash equivalents of $317.5 million compared with $177.4 million at the end of March 2023.
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) second-quarter 2023 EPS of $1.81 missed the Zacks Consensus Estimate of $1.97 and declined 25.2% year over year.
JBHT’s total operating revenues of $3,132.6 million also lagged the Zacks Consensus Estimate of $3,347.5 million and fell 18.4% year over year. The downfall was due to a decline in revenue per load of 24% in Integrated Capacity Solutions, 13% in Intermodal, 21% in Truckload and a 4% decline in productivity in Dedicated Capacity Solutions on the back of changes in customer rate, freight mix and lower fuel surcharge revenue.
Total operating revenues, excluding fuel surcharges, decreased 14% year over year.
Delta Air Lines (DAL - Free Report) reported better-than-expected revenues and EPS, driven by strong air-travel demand. DAL’s second-quarter 2023 EPS (excluding 16 cents from non-recurring items) of $2.68 comfortably beat the Zacks Consensus Estimate of $2.42. DAL reported EPS of $1.44 a year ago, dull compared to the current scenario, as air-travel demand was not so buoyant then.
DAL’s total revenues of $15,578 million beat the Zacks Consensus Estimate of $14,991.6 million. Total revenues increased 12.69% on a year-over-year basis, driven by higher air-travel demand.
United Airlines Holdings, Inc. (UAL - Free Report) reported second-quarter 2023 EPS of $5.03, which outpaced the Zacks Consensus Estimate of $3.99 and improved more than 100% year over year.
Operating revenues of $14,178 million beat the Zacks Consensus Estimate of $13,927.1 million. UAL’s revenues increased 17.1% year over year due to upbeat air-travel demand. The year-over-year increase in the top line was driven by a 20.1% rise in passenger revenues (accounting for 91.7% of the top line) to $13,002 million. Nearly 42 million passengers traveled on UAL flights in the second quarter.
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GATX Q2 Earnings Surpass Estimates, Revenues Fall Short
GATX Corporation’s (GATX - Free Report) second-quarter 2023 earnings per share (EPS) of $1.73 outpaced the Zacks Consensus Estimate of $1.61. The bottom line grew 1.7% year over year. Revenues of $343.2 million missed the Zacks Consensus Estimate of $356.9 million but improved 9.7% year over year.
Lease revenues of $308.6 million grew 8.3% year over year, while Marine operating revenues decreased 61.5% to $2 million. Revenues from other sources rose 44.2% to $32.6 million.
Total expenses (on a reported basis) rose 7.8% to $248.8 million.
GATX Corporation Price, Consensus and EPS Surprise
GATX Corporation price-consensus-eps-surprise-chart | GATX Corporation Quote
Profits in the Rail North American segment increased to $79.3 million from $53.1 million a year ago. The renewal lease rate change of GATX’s Lease Price Index (LPI) was 33.1% in the reported quarter compared with the year-ago quarter’s 6.1%. The average lease renewal term for cars included in LPI was 61 months compared with 51 months a year ago.
Rail North America’s wholly-owned fleet consisted of approximately 109,500 rail cars at June 2023-end. Fleet utilization was 99.3%, flat sequentially.
In the Rail International segment, profits fell 3.5% year over year to $27.3 million in the second 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 28,800 rail cars at the second-quarter end. Fleet utilization was 96.9% in the reported quarter compared with 99.9% at the end of second-quarter 2022.
The Portfolio Management unit reported a segmental profit of $26.6 million in the second quarter against a segmental loss of $15.7 million in the year-ago quarter.
As of Jun 30, 2023, GATX had cash and cash equivalents of $317.5 million compared with $177.4 million at the end of March 2023.
Currently, GATX carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performances of Other Transportation Companies
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) second-quarter 2023 EPS of $1.81 missed the Zacks Consensus Estimate of $1.97 and declined 25.2% year over year.
JBHT’s total operating revenues of $3,132.6 million also lagged the Zacks Consensus Estimate of $3,347.5 million and fell 18.4% year over year. The downfall was due to a decline in revenue per load of 24% in Integrated Capacity Solutions, 13% in Intermodal, 21% in Truckload and a 4% decline in productivity in Dedicated Capacity Solutions on the back of changes in customer rate, freight mix and lower fuel surcharge revenue.
Total operating revenues, excluding fuel surcharges, decreased 14% year over year.
Delta Air Lines (DAL - Free Report) reported better-than-expected revenues and EPS, driven by strong air-travel demand. DAL’s second-quarter 2023 EPS (excluding 16 cents from non-recurring items) of $2.68 comfortably beat the Zacks Consensus Estimate of $2.42. DAL reported EPS of $1.44 a year ago, dull compared to the current scenario, as air-travel demand was not so buoyant then.
DAL’s total revenues of $15,578 million beat the Zacks Consensus Estimate of $14,991.6 million. Total revenues increased 12.69% on a year-over-year basis, driven by higher air-travel demand.
United Airlines Holdings, Inc. (UAL - Free Report) reported second-quarter 2023 EPS of $5.03, which outpaced the Zacks Consensus Estimate of $3.99 and improved more than 100% year over year.
Operating revenues of $14,178 million beat the Zacks Consensus Estimate of $13,927.1 million. UAL’s revenues increased 17.1% year over year due to upbeat air-travel demand. The year-over-year increase in the top line was driven by a 20.1% rise in passenger revenues (accounting for 91.7% of the top line) to $13,002 million. Nearly 42 million passengers traveled on UAL flights in the second quarter.