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GATX Corporation’s (GATX - Free Report) first-quarter 2020 earnings per share came in at $1.31 per share, which surpassed the Zacks Consensus Estimate by 29 cents. Moreover, the bottom line increased 17% year over year on the back of lower marine operating expenses.
Meanwhile, total revenues declined 2.6% year over year to $308.9 million in the first quarter. Total expenses (on a reported basis) rose marginally to $241.6 million in the quarter.
Segmental Results
Profits in the Rail North America segment increased to $72 million from the prior-year quarter’s level of $68.4 million. This upside can be attributed to higher gains on asset dispositions. The renewal lease rate change of the company’s Lease Price Index (LPI) was -11.6% in the reported quarter compared with the year-ago quarter’s +5.2%. Additionally, average lease renewal term for cars included in the LPI was 31 months compared with 39 months in the year-ago quarter.
In fact, Rail North America’s wholly-owned fleet had approximately 117,600 rail cars at the March end of 2020. Fleet utilization was 99% compared with 99.4% at the end of the first quarter.
In the Rail International segment, profits fell 6.1% year over year to $13.9 million. Results were hurt by changes in foreign currency exchange rates.
Moreover, GATX Rail Europe’s fleet totaled 25,400 rail cars at the end of the quarter. Fleet utilization was 98.5% compared with 98.9% witnessed at the end of the prior-year quarter.
In the Portfolio Management unit, profits increased on a year-over-year basis to $19.5 million, driven by the Rolls-Royce and Partner Finance affiliates’ buoyant performance. In addition, the American Steamship segment's profit dropped 64% to $0.9 million in the March-end quarter. Lower tonnage due to COVID-19 impacts have affected the American Steamship segment. In February, GATX inked a $260-million (subject to working capital and other closing adjustments) stock purchase deal with Rand Logistics for the divestiture of the American Steamship Company segment. The transaction is anticipated to close by Jun 30.
GATX suspended its previously-announced 2020 guidance due to uncertainties related to the COVID-19 pandemic.
GATX Corporation Price, Consensus and EPS Surprise
Apart from GATX , there are a few companies in the Zacks Transportation sector like Werner Enterprises, Inc. (WERN - Free Report) , Union Pacific Corporation (UNP - Free Report) and Canadian Pacific Railway Limited (CP - Free Report) that have beaten earnings estimates in first-quarter 2020.
Werner Enterprises reported first-quarter 2020 earnings per share (excluding 7 cents from non-recurring items) of 40 cents, which surpassed the Zacks Consensus Estimate of 35 cents. However, the bottom line declined 23.1% year over year.
Union Pacific’s first-quarter 2020 earnings of $2.15 per share surpassed the Zacks Consensus Estimate of $1.86. Moreover, the bottom line increased 11.4% on a year-over-year basis.
Canadian Pacific’s first-quarter 2020 earnings (excluding $1.08 from non-recurring items) of $3.3 (C$4.42) per share surpassed the Zacks Consensus Estimate of $2.86. Quarterly earnings surged more than 55% year over year.
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GATX Corp (GATX) Q1 Earnings Beat Estimates, Increase Y/Y
GATX Corporation’s (GATX - Free Report) first-quarter 2020 earnings per share came in at $1.31 per share, which surpassed the Zacks Consensus Estimate by 29 cents. Moreover, the bottom line increased 17% year over year on the back of lower marine operating expenses.
Meanwhile, total revenues declined 2.6% year over year to $308.9 million in the first quarter. Total expenses (on a reported basis) rose marginally to $241.6 million in the quarter.
Segmental Results
Profits in the Rail North America segment increased to $72 million from the prior-year quarter’s level of $68.4 million. This upside can be attributed to higher gains on asset dispositions. The renewal lease rate change of the company’s Lease Price Index (LPI) was -11.6% in the reported quarter compared with the year-ago quarter’s +5.2%. Additionally, average lease renewal term for cars included in the LPI was 31 months compared with 39 months in the year-ago quarter.
In fact, Rail North America’s wholly-owned fleet had approximately 117,600 rail cars at the March end of 2020. Fleet utilization was 99% compared with 99.4% at the end of the first quarter.
In the Rail International segment, profits fell 6.1% year over year to $13.9 million. Results were hurt by changes in foreign currency exchange rates.
Moreover, GATX Rail Europe’s fleet totaled 25,400 rail cars at the end of the quarter. Fleet utilization was 98.5% compared with 98.9% witnessed at the end of the prior-year quarter.
In the Portfolio Management unit, profits increased on a year-over-year basis to $19.5 million, driven by the Rolls-Royce and Partner Finance affiliates’ buoyant performance. In addition, the American Steamship segment's profit dropped 64% to $0.9 million in the March-end quarter. Lower tonnage due to COVID-19 impacts have affected the American Steamship segment. In February, GATX inked a $260-million (subject to working capital and other closing adjustments) stock purchase deal with Rand Logistics for the divestiture of the American Steamship Company segment. The transaction is anticipated to close by Jun 30.
GATX suspended its previously-announced 2020 guidance due to uncertainties related to the COVID-19 pandemic.
GATX Corporation Price, Consensus and EPS Surprise
GATX Corporation price-consensus-eps-surprise-chart | GATX Corporation Quote
Liquidity
GATX, carrying a Zacks Rank #4 (Sell), exited the first quarter with cash and cash equivalents of $570.7 million compared with $151 million at the end of 2019.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Sectorial Snapshot
Apart from GATX , there are a few companies in the Zacks Transportation sector like Werner Enterprises, Inc. (WERN - Free Report) , Union Pacific Corporation (UNP - Free Report) and Canadian Pacific Railway Limited (CP - Free Report) that have beaten earnings estimates in first-quarter 2020.
Werner Enterprises reported first-quarter 2020 earnings per share (excluding 7 cents from non-recurring items) of 40 cents, which surpassed the Zacks Consensus Estimate of 35 cents. However, the bottom line declined 23.1% year over year.
Union Pacific’s first-quarter 2020 earnings of $2.15 per share surpassed the Zacks Consensus Estimate of $1.86. Moreover, the bottom line increased 11.4% on a year-over-year basis.
Canadian Pacific’s first-quarter 2020 earnings (excluding $1.08 from non-recurring items) of $3.3 (C$4.42) per share surpassed the Zacks Consensus Estimate of $2.86. Quarterly earnings surged more than 55% year over year.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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