GATX Surpasses Q4 Earnings Estimates, Misses on Revenues
GATX Corporation’s (GATX) fourth-quarter 2023 earnings per share (EPS) of $1.74 outpaced the Zacks Consensus Estimate of $1.56. The bottom line improved 12.9% year over year. Revenues of $368.7 million missed the Zacks Consensus Estimate of $394.9 million but improved 14.3% year over year.
Lease revenues of $323.6 million grew 10.1% year over year, while Marine operating revenues decreased 70.4% to $0.8 million. Revenues from other sources rose 27.3% to $31.2 million.
Total expenses (on a reported basis) rose 16.2% to $270.9 million.
GATX Corporation Price, Consensus and EPS Surprise
GATX Corporation price-consensus-eps-surprise-chart | GATX Corporation Quote
Profits in the Rail North American segment decreased to $66.7 million from $83.5 million a year ago. The renewal lease rate change of GATX’s Lease Price Index (LPI) was 33.5% in the reported quarter compared with the year-ago quarter’s 24.4%. The average lease renewal term for cars included in LPI was 65 months compared with 52 months a year ago.
Rail North America’s wholly-owned fleet consisted of approximately 110,500 rail cars at December 2023-end. Fleet utilization was 99.3% at the end of the fourth quarter compared with 99.5% at the end of the fourth quarter of 2022.
In the Rail International segment, segment profit was $34.4 million in the fourth quarter of 2023, compared with $18.2 million in the year-ago quarter. Results had a favorableimpact from Tax Adjustments and Other Items and more railcars on lease.
GATX Rail Europe’s fleet totaled more than 29,200 rail cars at the fourth-quarter end. Fleet utilization was 95.9% in the reported quarter compared with 96% at the end of fourth-quarter 2022.
The Portfolio Management unit reported a segmental profit of $31.3 million in the fourth quarter compared with $23.1 million in the year-ago quarter.
As of Dec 31, 2023, GATX had cash and cash equivalents of $450.7 million compared with $203.1 million at the end of September 2023.
GATX anticipates full-year 2024 EPS in the range of $7.30–$7.70.
Currently, GATX carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performances of Other Transportation Companies
J.B. Hunt Transport Services, Inc.’s JBHT fourth-quarter 2023 earnings of $1.47 per share missed the Zacks Consensus Estimate of $1.74 and declined 23.4% year over year.
JBHT’s total operating revenues of $3,303.70 million surpassed the Zacks Consensus Estimate of $3,236.2 million but fell 9.5% year over year. Total operating revenues, excluding fuel surcharge revenue, fell 6% year over year.
Delta Air Lines DAL has reported fourth-quarter 2023 earnings (excluding $1.88 from non-recurring items) of $1.28 per share, which comfortably beat the Zacks Consensus Estimate of $1.17. Earnings, however, declined 13.51% on a year-over-year basis due to high labor costs.
Revenues of $14,223 million surpassed the Zacks Consensus Estimate of $14,069.5 million and increased 5.87% on a year-over-year basis, driven by strong holiday-air-travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $13,661 million, up 11% year over year.
United Airlines Holdings, Inc. (UAL) reported fourth-quarter 2023 earnings per share (excluding 19 cents from non-recurring items) of $2.00, which outpaced the Zacks Consensus Estimate of $1.61 but declined 18.7% year over year.
Operating revenues of $13,626 million beat the Zacks Consensus Estimate of $13,546.8 million. The top line increased 9.9% year over year due to upbeat air-travel demand. This was driven by a 10.9% rise in passenger revenues (accounting for 91.1% of the top line) to $12,421 million. Almost 41,779 passengers traveled on UAL flights in the fourth quarter.
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