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GATX Corporation’s GATX second-quarter 2020 earnings per share (excluding 6 cents from non-recurring items) came in at $1.05, surpassing the Zacks Consensus Estimate of 91 cents. However, the bottom line declined year over year due to coronavirus-led disruptions on Rail North America and Rail International segments.
Total revenues were $300.5 million in the reported quarter. Total expenses (on a reported basis) inched up 2.3% to $232.2 million.
Profits in the Rail North America segment decreased to $50 million from the prior-year quarter’s level of $85.8 million. This downside was due to low gains on asset dispositions. The renewal lease rate change of the company’s Lease Price Index (“LPI”) was -28% in the reported quarter, compared with the year-ago quarter’s -2.8%. Additionally, average lease renewal term for cars included in the LPI was 31 months, compared with 40 months in the year-ago quarter.
In fact, Rail North America’s wholly owned fleet had approximately 117,800 rail cars at the end of June 2020. Fleet utilization was 98.7%, compared with 99.5% at the end of second-quarter 2019.
In the Rail International segment, profits fell 6.1% year over year to $20 million. Results were hurt by coronavirus-led shutdowns at railcar manufacturing facilities.
Moreover, GATX Rail Europe’s fleet totaled 25,700 rail cars at the end of the quarter. Fleet utilization was 98.4%, compared with 98.9% at the end of second-quarter 2019.
In the Portfolio Management unit, profits surged 62.2% year over year to $19.3 million, driven by the Rolls-Royce and Partner Finance affiliates’ buoyant performance.
GATX Corporation Price, Consensus and EPS Surprise
GATX Corporation price-consensus-eps-surprise-chart | GATX Corporation Quote
GATX, carrying a Zacks Rank #5 (Strong Sell), exited the second quarter with cash and cash equivalents of $492.9 million compared with $151 million at the end of 2019.
Within the broader Transportation sector, Delta Air Lines DAL, J.B. Hunt Transport Services JBHT and Kansas City Southern KSU recently reported second-quarter earnings numbers.
Delta, carrying a Zacks Rank #4 (Sell), incurred a loss (excluding $4.58 from non-recurring items) of $4.43 per share in the June quarter, wider than the Zacks Consensus Estimate of a loss of $3.97. Total revenues in the quarter came in at $1,468 million, surpassing the Zacks Consensus Estimate of $1,400.8 million.
J.B. Hunt, carrying a Zacks Rank #3 (Hold), reported second-quarter earnings of $1.14 per share, which surpassed the Zacks Consensus Estimate by 31 cents. Total revenues of $2,145.6 million also beat the Zacks Consensus Estimate of $2,060.9 million. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Kansas City Southern’s second-quarter earnings (excluding a penny from non-recurring items) of $1.15 per share beat the Zacks Consensus Estimate of $1.12. This Zacks Rank #3 (Hold) company’s total revenues of $547.9 million lagged the Zacks Consensus Estimate of $550.2 million.
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