Leasing services company GATX (NYSE: GATX) will be reporting earnings this Thursday before the bell. Here’s what to expect.
GATX beat analysts’ revenue expectations last quarter, reporting revenues of $449 million, up 8.6% year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ adjusted operating income estimates but a miss of analysts’ EBITDA estimates. It reported 100,593 active railcars, down 2.3% year on year.
Is GATX a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting GATX’s revenue to grow 42.3% year on year, improving from the 11% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. GATX has a history of exceeding Wall Street’s expectations.
Looking at GATX’s peers in the industrial distributors segment, some have already reported their Q1 results, giving us a hint as to what we can expect. FTAI Aviation delivered year-on-year revenue growth of 65.5%, beating analysts’ expectations by 12.1%, and Rush Enterprises reported a revenue decline of 9%, falling short of estimates by 2.5%. FTAI Aviation traded up 17.2% following the results while Rush Enterprises was down 4.4%.
Read our full analysis of FTAI Aviation’s results here and Rush Enterprises’s results here.
There has been positive sentiment among investors in the industrial distributors segment, with share prices up 9.9% on average over the last month. GATX is up 12.8% during the same time and is heading into earnings with an average analyst price target of $215.75 (compared to the current share price of $195.12).
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