Back to top

Image: Bigstock

GATX Q1 Earnings and Revenues Beat, Fleet Utilization High

Read MoreHide Full Article

GATX Corporation (GATX - Free Report) performed impressively in the first quarter of 2019, reporting better-than-expected earnings and revenues. The company’s earnings of $1.12 per share surpassed the Zacks Consensus Estimate of $1.05. Results were aided by higher revenues.

Revenues came in at $317 million, which outpaced the Zacks Consensus Estimate of $308.2 million. The top line also increased on a year-over-year basis mainly owing to higher other revenues. Total expenses increased 1.4% to $241 million in the reported quarter.

GATX, carrying a Zacks Rank #2 (Buy), still anticipates 2019 earnings to be in the range of $4.85-$5.15 per share. The Zacks Consensus Estimate is currently pegged at $4.99 per share, just below the mid-point ($5) of the guided range. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 

GATX Corporation Price, Consensus and EPS Surprise

 

GATX Corporation Price, Consensus and EPS Surprise | GATX Corporation Quote

Segment-Wise Results

Profits at the Rail North America segment decreased to $68.4 million from $108.9 million a year ago. The decline was mainly due to a reduction in remarketing income recorded in the quarter under review. The renewal lease rate change of the company’s Lease Price Index (LPI) was 5.2% in the reported quarter compared with -11.6% a year ago. Additionally, average lease renewal term for cars included in the LPI was 39 months compared with 34 months in the year-ago quarter.

In fact, Rail North America’s wholly-owned fleet had approximately 121,000 rail cars at the end of the first quarter. Fleet utilization came in at 99.4% compared with 98.2% at the end of the year-ago quarter.

At the Rail International segment, profits decreased 22.1% year over year to $14.8 million. Segmental profits were hurt by unfavorable movements related to foreign exchange.

Moreover, GATX Rail Europe’s fleet totaled approximately 23,500 rail cars at the end of first- quarter 2019. Fleet utilization was 98.9% compared with 96.7% at the end of first-quarter 2018.

At the Portfolio Management unit, profits declined 11.5% to $12.3 million. Segmental profits were hurt by weak marine operating results. However, the American Steamship segment's profit increased to $2.5 million in the quarter under review.

Upcoming Releases

Investors interested in the Zacks Transportation sector are keenly awaiting first-quarter 2019 earnings reports from key players such as C.H. Robinson Worldwide (CHRW - Free Report) , Expeditors (EXPD - Free Report) and Air Lease Corp. (AL - Free Report) . While C.H. Robinson will report first-quarter earnings on Apr 30, Expeditors and Air Lease will announce the same on May 7 and 9, respectively.

Zacks' Top 10 Stocks for 2019

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?

Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.

See Latest Stocks Today >>

Published in