Leasing services company GATX (NYSE:GATX) will be reporting earnings this Thursday morning. Here’s what investors should know.
GATX beat analysts’ revenue expectations by 0.8% last quarter, reporting revenues of $439.3 million, up 8.4% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates. It reported 101,288 active railcars, down 1.4% 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 7.7% year on year to $445.2 million, slowing from the 12.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.42 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 over the past two years by 1.2% on average.
Looking at GATX’s peers in the industrial distributors segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Rush Enterprises’s revenues decreased 11.8% year on year, beating analysts’ expectations by 2.6%, and Richardson Electronics reported revenues up 5.7%, topping estimates by 4.8%. Richardson Electronics traded down 11.7% following the results.
Read our full analysis of Rush Enterprises’s results here and Richardson Electronics’s results here.
There has been positive sentiment among investors in the industrial distributors segment, with share prices up 7.8% on average over the last month. GATX is up 8.1% during the same time and is heading into earnings with an average analyst price target of $208.50 (compared to the current share price of $193.49).
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.