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Gatx (GATX) Down 2.6% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for Gatx (GATX - Free Report) . Shares have lost about 2.6% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Gatx due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
GATX Outperforms in Q1
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 still anticipates 2019 earnings to be in the range of $4.85-$5.15 per share.
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.
How Have Estimates Been Moving Since Then?
Fresh estimates followed an upward path over the past two months.
VGM Scores
At this time, Gatx has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Gatx has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Gatx (GATX) Down 2.6% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Gatx (GATX - Free Report) . Shares have lost about 2.6% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Gatx due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
GATX Outperforms in Q1
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 still anticipates 2019 earnings to be in the range of $4.85-$5.15 per share.
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.
How Have Estimates Been Moving Since Then?
Fresh estimates followed an upward path over the past two months.
VGM Scores
At this time, Gatx has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Gatx has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.