GATX (GATX) Q3 Earnings Report Preview: What To Look For
Leasing services company GATX (NYSE:GATX) will be announcing earnings results this Tuesday before market open. Here’s what to expect.
GATX beat analysts’ revenue expectations by 0.8% last quarter, reporting revenues of $430.5 million, up 11.3% year on year. It was a mixed quarter for the company, with full-year EPS guidance slightly topping analysts’ expectations but a significant miss of analysts’ EBITDA estimates. It reported 102,317 active railcars, flat 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, analysts are expecting GATX’s revenue to grow 7.5% year on year to $435.8 million, slowing from the 12.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.32 per share.
Analysts covering the company have generally 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, beating revenue estimates every single time since going public by 0.9% on average.
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. Richardson Electronics delivered year-on-year revenue growth of 1.6%, beating analysts’ expectations by 6%, and Fastenal reported revenues up 11.7%, in line with consensus estimates. Richardson Electronics traded up 11.4% following the results while Fastenal was down 6.7%.
Read our full analysis of Richardson Electronics’s results here and Fastenal’s results here.
Investors in the industrial distributors segment have had steady hands going into earnings, with share prices flat over the last month. GATX is down 2.2% during the same time and is heading into earnings with an average analyst price target of $188.75 (compared to the current share price of $172.02).
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