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Why Is Gatx (GATX) Up 1.8% Since Last Earnings Report?
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It has been about a month since the last earnings report for Gatx (GATX - Free Report) . Shares have added about 1.8% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Gatx due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Earnings Beat in Q4 at GATX
GATX Corporation’s 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.
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.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM Scores
At this time, Gatx has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Gatx has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
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Why Is Gatx (GATX) Up 1.8% Since Last Earnings Report?
It has been about a month since the last earnings report for Gatx (GATX - Free Report) . Shares have added about 1.8% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Gatx due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Earnings Beat in Q4 at GATX
GATX Corporation’s 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.
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.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM Scores
At this time, Gatx has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Gatx has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.