Leasing services company GATX (NYSE: GATX) will be announcing earnings results this Thursday before the bell. Here’s what investors should know.
GATX missed analysts’ revenue expectations last quarter, reporting revenues of $580.1 million, up 34.8% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates. It reported 190,587 active railcars, up 86.3% 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 34.9% year on year, improving from the 8.4% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. GATX has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at GATX’s peers in the industrial distributors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Rush Enterprises delivered year-on-year revenue growth of 12.4%, beating analysts’ expectations by 3.2%, and Richardson Electronics reported revenues up 18.9%, topping estimates by 10.1%. Richardson Electronics’s stock price was unchanged following the results.
Read our full analysis of Rush Enterprises’s results here and Richardson Electronics’s results here.
In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the industrial distributors stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.7% on average over the last month. GATX is down 7.6% during the same time and is heading into earnings with an average analyst price target of $219.50 (compared to the current share price of $167.43).
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