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GATX Q3 Earnings & Revenues Lag Estimates, Increase Y/Y
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GATX Corporation’s (GATX - Free Report) third-quarter 2023 earnings per share (EPS) of $1.44 lagged the Zacks Consensus Estimate of $1.53. The bottom line improved 29% year over year. Revenues of $360.1 million missed the Zacks Consensus Estimate of $374.4 million but improved 12.2% year over year.
Lease revenues of $317.2 million grew 8.5% year over year, while Marine operating revenues decreased 87.5% to $0.6 million. Revenues from other sources rose 77.7% to $42.3 million.
Total expenses (on a reported basis) rose 10.1% to $257.1 million.
Profits in the Rail North American segment increased to $66.1 million from $64.3 million a year ago. The renewal lease rate change of GATX’s Lease Price Index (LPI) was 33.4% in the reported quarter compared with the year-ago quarter’s 18.8%. The average lease renewal term for cars included in LPI was 65 months compared with 52 months a year ago.
Rail North America’s wholly-owned fleet consisted of approximately 109,700 rail cars at September 2023-end. Fleet utilization was 99.3% at the end of the third quarter compared with 99.6% at the end of the third quarter of 2022.
In the Rail International segment, segment profit was $28.2 million in the third quarter of 2023 compared with $14.5 million in the year-ago quarter. Quarterly results had an unfavorable impact of $10.8 million from Tax Adjustments and Other Items.
GATX Rail Europe’s fleet totaled more than 29,100 rail cars at the third-quarter end. Fleet utilization was 96% in the reported quarter compared with 99.4% at the end of third-quarter 2022.
The Portfolio Management unit reported a segmental profit of $20.2 million in the third quarter compared with $11.2 million in the year-ago quarter.
As of Sep 30, 2023, GATX had cash and cash equivalents of $203.1 million compared with $317.5 million at the end of June 2023.
GATX anticipates full-year 2023 earnings to modestly exceed the high end of its prior guidance range of $6.50–$6.90 per diluted share.
GATX Corporation Price, Consensus and EPS Surprise
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) third-quarter 2023 earnings of $1.80 per share missed the Zacks Consensus Estimate of $1.85 and declined 30% year over year.
JBHT’s total operating revenues of $3,163.8 million also lagged the Zacks Consensus Estimate of $3,224 million and fell 18% year over year. Total operating revenues, excluding fuel surcharges, decreased 15% year over year.
Delta Air Lines, Inc. (DAL - Free Report) reported third-quarter 2023 earnings (excluding 31 cents from non-recurring items) of $2.03 per share, which comfortably beat the Zacks Consensus Estimate of $1.92 and improved 35% on a year-over-year basis.
DAL’s revenues of $15,488 million beat the Zacks Consensus Estimate of $15,290.4 million and increased 11% on a year-over-year basis, driven by higher air-travel demand.
Alaska Air Group, Inc. (ALK - Free Report) reported third-quarter 2023earnings of $1.83 per share, which missed the Zacks Consensus Estimate of $1.88 and declined 28% year over year.
Operating revenues of $2,839 million missed the Zacks Consensus Estimate of $2,876.1 million. The top line jumped 0.4% year over year, with passenger revenues accounting for 92.2% of the top line and increasing 0.1% owing to continued recovery in air-travel demand.
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GATX Q3 Earnings & Revenues Lag Estimates, Increase Y/Y
GATX Corporation’s (GATX - Free Report) third-quarter 2023 earnings per share (EPS) of $1.44 lagged the Zacks Consensus Estimate of $1.53. The bottom line improved 29% year over year. Revenues of $360.1 million missed the Zacks Consensus Estimate of $374.4 million but improved 12.2% year over year.
Lease revenues of $317.2 million grew 8.5% year over year, while Marine operating revenues decreased 87.5% to $0.6 million. Revenues from other sources rose 77.7% to $42.3 million.
Total expenses (on a reported basis) rose 10.1% to $257.1 million.
Profits in the Rail North American segment increased to $66.1 million from $64.3 million a year ago. The renewal lease rate change of GATX’s Lease Price Index (LPI) was 33.4% in the reported quarter compared with the year-ago quarter’s 18.8%. The average lease renewal term for cars included in LPI was 65 months compared with 52 months a year ago.
Rail North America’s wholly-owned fleet consisted of approximately 109,700 rail cars at September 2023-end. Fleet utilization was 99.3% at the end of the third quarter compared with 99.6% at the end of the third quarter of 2022.
In the Rail International segment, segment profit was $28.2 million in the third quarter of 2023 compared with $14.5 million in the year-ago quarter. Quarterly results had an unfavorable impact of $10.8 million from Tax Adjustments and Other Items.
GATX Rail Europe’s fleet totaled more than 29,100 rail cars at the third-quarter end. Fleet utilization was 96% in the reported quarter compared with 99.4% at the end of third-quarter 2022.
The Portfolio Management unit reported a segmental profit of $20.2 million in the third quarter compared with $11.2 million in the year-ago quarter.
As of Sep 30, 2023, GATX had cash and cash equivalents of $203.1 million compared with $317.5 million at the end of June 2023.
GATX anticipates full-year 2023 earnings to modestly exceed the high end of its prior guidance range of $6.50–$6.90 per diluted share.
GATX Corporation Price, Consensus and EPS Surprise
GATX Corporation price-consensus-eps-surprise-chart | GATX Corporation Quote
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) third-quarter 2023 earnings of $1.80 per share missed the Zacks Consensus Estimate of $1.85 and declined 30% year over year.
JBHT’s total operating revenues of $3,163.8 million also lagged the Zacks Consensus Estimate of $3,224 million and fell 18% year over year. Total operating revenues, excluding fuel surcharges, decreased 15% year over year.
Delta Air Lines, Inc. (DAL - Free Report) reported third-quarter 2023 earnings (excluding 31 cents from non-recurring items) of $2.03 per share, which comfortably beat the Zacks Consensus Estimate of $1.92 and improved 35% on a year-over-year basis.
DAL’s revenues of $15,488 million beat the Zacks Consensus Estimate of $15,290.4 million and increased 11% on a year-over-year basis, driven by higher air-travel demand.
Alaska Air Group, Inc. (ALK - Free Report) reported third-quarter 2023 earnings of $1.83 per share, which missed the Zacks Consensus Estimate of $1.88 and declined 28% year over year.
Operating revenues of $2,839 million missed the Zacks Consensus Estimate of $2,876.1 million. The top line jumped 0.4% year over year, with passenger revenues accounting for 92.2% of the top line and increasing 0.1% owing to continued recovery in air-travel demand.