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GATX Hurt By Currency Fluctuations And Coronavirus Woes
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We recently issued an updated report on GATX Corporation (GATX - Free Report) .
Like many other transportation companies, GATX is hit by the uncertainties related to the COVID-19 pandemic. The coronavirus-induced economic slowdown is expected to hurt its second-quarter 2020 results as well.
The below-par performance of the Rail International segment, which is a significant contributor to the company’s top line, is a headwind. Notably, segmental profits fell 6.1% year over year in the March quarter due to fluctuations in foreign currency exchange rates.
Considering the downturn in the railcar leasing market, average lease rate on lease renewals are expected to be low in 2020. This, in turn, might put pressure on the Rail North America segment’s profitability. In fact, GATX suspended its previously-announced 2020 guidance due to uncertainties related to the pandemic.
Due to the ongoing crisis, shares of GATX have declined more than 19% since the beginning of February. Moreover, the Zacks Consensus Estimate for 2020 earnings has been revised downward by more than 100% in the past 60 days.
However, GATX’s liquidity position looks impressive. The company had no short-term debt obligations at the end of the first quarter. Its cash and cash equivalents at the end of the period stood at $571 million.
The Zacks Consensus Estimate for Scorpio Tankers’ current-year earnings has been revised upward in excess of 100% in the past 60 days.
The Zacks Consensus Estimate for Teekay Tanker’s current-year earnings has been revised upward by 49.4% in the past 60 days.
The Zacks Consensus Estimate for Nordic American Tankers’ current-year earnings has been revised upward by 14.1% in the past 60 days.
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Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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GATX Hurt By Currency Fluctuations And Coronavirus Woes
We recently issued an updated report on GATX Corporation (GATX - Free Report) .
Like many other transportation companies, GATX is hit by the uncertainties related to the COVID-19 pandemic. The coronavirus-induced economic slowdown is expected to hurt its second-quarter 2020 results as well.
The below-par performance of the Rail International segment, which is a significant contributor to the company’s top line, is a headwind. Notably, segmental profits fell 6.1% year over year in the March quarter due to fluctuations in foreign currency exchange rates.
Considering the downturn in the railcar leasing market, average lease rate on lease renewals are expected to be low in 2020. This, in turn, might put pressure on the Rail North America segment’s profitability. In fact, GATX suspended its previously-announced 2020 guidance due to uncertainties related to the pandemic.
Due to the ongoing crisis, shares of GATX have declined more than 19% since the beginning of February. Moreover, the Zacks Consensus Estimate for 2020 earnings has been revised downward by more than 100% in the past 60 days.
However, GATX’s liquidity position looks impressive. The company had no short-term debt obligations at the end of the first quarter. Its cash and cash equivalents at the end of the period stood at $571 million.
Zacks Rank & Key Picks
GATX carries a Zacks Rank #4 (Sell).
A few better-ranked stocks in the Zacks Transportation sector are Scorpio Tankers Inc. (STNG - Free Report) , Teekay Tankers Ltd. (TNK - Free Report) and Nordic American Tankers Limited (NAT - Free Report) . Scorpio Tankers and Teekay Tankers sport a Zacks Rank #1 (Strong Buy), while Nordic American Tankers carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Scorpio Tankers’ current-year earnings has been revised upward in excess of 100% in the past 60 days.
The Zacks Consensus Estimate for Teekay Tanker’s current-year earnings has been revised upward by 49.4% in the past 60 days.
The Zacks Consensus Estimate for Nordic American Tankers’ current-year earnings has been revised upward by 14.1% in the past 60 days.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>