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Gatx (GATX) Up 9.8% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Gatx (GATX - Free Report) . Shares have added about 9.8% in that time frame, outperforming 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 its most recent earnings report in order to get a better handle on the important drivers.
Earnings Beat in Q1 at GATX
GATX Corporation’s first-quarter 2024 earnings per share (EPS) of $2.01 outpaced the Zacks Consensus Estimate of $1.72. However, the bottom line declined 8.6% year over year. Revenues of $379.9 million improved 12.1% year over year.
Lease revenues of $333.3 million grew 10.3% year over year. Revenues from other sources rose 15.5% to $33.4 million.
Total expenses (on a reported basis) rose 8% to $265.9 million.
Profits in the Rail North America segment profit decreased to $90.3 million from $95.2 million a year ago. Lower segment profit was backed by lower gains on asset dispositions and higher interest expense, partially offset by higher lease revenues.
The renewal lease rate change of GATX’s Lease Price Index (LPI) was 33.0% in the reported quarter compared with the year-ago quarter’s 28.3%. The average lease renewal term for cars included in LPI was 64 months compared with 55 months a year ago.
Rail North America’s wholly owned fleet totaled approximately 111,400 cars, at March-2024 end. Fleet utilization was 99.4% at the end of the first quarter, compared with 99.3% at the end of prior-year quarter.
In the Rail International segment, segment profit was $28.8 million in the first quarter of 2024, compared with $23.5 million in the year-ago quarter. The uptick was driven by more railcars on lease.
GATX Rail Europe’s fleet totaled more than 29,300 railcars at the first-quarter end. Fleet utilization was 95.3% in the reported quarter compared with 98.5% at the end of the first quarter of 2023.
The Engine Leasing unit (earlier known as Portfolio Management) reported a segment profit of $25.7 million in the first quarter of 2024, compared with $28.3 million in the year-ago quarter. The first-quarter segment profit included a favorable impact of $0.6 million from Tax Adjustments and Other Items.
As of Dec 31, 2023, GATX had sold all its marine assets, including the Specialized Gas Vessels, and has renamed its Portfolio Management business segment to Engine Leasing to reflect the prospective operations of this business segment.
As of Mar 31, 2024, GATX had cash and cash equivalents of $479.1 million compared with $450.7 million at the end of December 2023.
GATX continues to anticipate full-year 2024 EPS in the range of $7.30–$7.70.The Zacks Consensus Estimate of $7.53 lies within the guidance.
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.
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Gatx (GATX) Up 9.8% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Gatx (GATX - Free Report) . Shares have added about 9.8% in that time frame, outperforming 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 its most recent earnings report in order to get a better handle on the important drivers.
Earnings Beat in Q1 at GATX
GATX Corporation’s first-quarter 2024 earnings per share (EPS) of $2.01 outpaced the Zacks Consensus Estimate of $1.72. However, the bottom line declined 8.6% year over year. Revenues of $379.9 million improved 12.1% year over year.
Lease revenues of $333.3 million grew 10.3% year over year. Revenues from other sources rose 15.5% to $33.4 million.
Total expenses (on a reported basis) rose 8% to $265.9 million.
Profits in the Rail North America segment profit decreased to $90.3 million from $95.2 million a year ago. Lower segment profit was backed by lower gains on asset dispositions and higher interest expense, partially offset by higher lease revenues.
The renewal lease rate change of GATX’s Lease Price Index (LPI) was 33.0% in the reported quarter compared with the year-ago quarter’s 28.3%. The average lease renewal term for cars included in LPI was 64 months compared with 55 months a year ago.
Rail North America’s wholly owned fleet totaled approximately 111,400 cars, at March-2024 end. Fleet utilization was 99.4% at the end of the first quarter, compared with 99.3% at the end of prior-year quarter.
In the Rail International segment, segment profit was $28.8 million in the first quarter of 2024, compared with $23.5 million in the year-ago quarter. The uptick was driven by more railcars on lease.
GATX Rail Europe’s fleet totaled more than 29,300 railcars at the first-quarter end. Fleet utilization was 95.3% in the reported quarter compared with 98.5% at the end of the first quarter of 2023.
The Engine Leasing unit (earlier known as Portfolio Management) reported a segment profit of $25.7 million in the first quarter of 2024, compared with $28.3 million in the year-ago quarter. The first-quarter segment profit included a favorable impact of $0.6 million from Tax Adjustments and Other Items.
As of Dec 31, 2023, GATX had sold all its marine assets, including the Specialized Gas Vessels, and has renamed its Portfolio Management business segment to Engine Leasing to reflect the prospective operations of this business segment.
As of Mar 31, 2024, GATX had cash and cash equivalents of $479.1 million compared with $450.7 million at the end of December 2023.
GATX continues to anticipate full-year 2024 EPS in the range of $7.30–$7.70.The Zacks Consensus Estimate of $7.53 lies within the guidance.
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.