What's in Store for GATX Corporation (GATX) in Q3 Earnings?
GATX Corporation GATX is scheduled to report third-quarter 2023 results on Oct 24, before market open.
GATX has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in three of the preceding four quarters (missed once), the average beat being 17.3%.
Let’s see how things are shaping up for GATX this earnings season.
Q3 Expectations
The Zacks Consensus Estimate for third-quarter 2023 revenues is pegged at $374.4 million, indicating 16.63% growth year over year. The top line is likely to have been aided by a rise in lease revenues. Per our estimates, lease revenues are likely to have gained 14.3% year over year.
Rail North America revenues might have been aided by higher lease revenues and higher remarketing income. We predict Rail North America revenues to improve 47.7% year over year. Our model projects Rail International and Portfolio Management revenues to surge 66.7% and 63.4% year over year, respectively.
GATX Corporation Price and EPS Surprise
GATX Corporation price-eps-surprise | GATX Corporation Quote
However, expenses are likely to have increased in third-quarter 2023. Per our estimate, the metric has jumped 23.6% year over year. The Zacks Consensus Estimate for third-quarter 2023 earnings is pegged at $1.53 per share, indicating 36.6% growth year over year.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for GATX this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
GATX has an Earnings ESP of 0.00% and a Zacks Rank #3.
Highlights of Q2
GATX's second-quarter 2023 earnings per share of $1.73 outpaced the Zacks Consensus Estimate of $1.61. The bottom line grew 1.7% year over year. Revenues of $343.2 million missed the Zacks Consensus Estimate of $356.9 million but improved 9.7% year over year.
Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on their third-quarter 2023 earnings.
Old Dominion Freight Line ODFL has an Earnings ESP of +0.40% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
ODFL is scheduled to report third-quarter 2023 earnings on Oct 25. The Zacks Consensus Estimate for earnings has been revised 2.91% upward over the last 60 days. ODFL has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the preceding four quarters (missing the mark on the other occasion), the average beat being 3.86%.
Kirby Corporation KEX has an Earnings ESP of +6.52% and a Zacks Rank #2. KEX is slated to report third-quarter 2023 earnings on Oct 26.
The Zacks Consensus Estimate for third-quarter 2023 earnings has remained flat over the last seven days. KEX has a stellar earnings surprise history, having outshined the Zacks Consensus Estimate in each of the preceding four quarters by an average of 8.03%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Old Dominion Freight Line, Inc. (ODFL) : Free Stock Analysis Report
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GATX Corporation (GATX) : Free Stock Analysis Report
