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GATX Q1 Earnings and Revenues Beat, Fleet Utilization High

Zacks Equity Research

GATX Corporation GATX 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, Expeditors EXPD and Air Lease Corp. AL. 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.

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Air Lease Corporation (AL) : Free Stock Analysis Report
 
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