GATX Corporation GATX reported lower-than-expected third-quarter 2022 results, wherein both earnings and revenues lagged the Zacks Consensus Estimate.
Quarterly earnings of $1.12 per share lagged the Zacks Consensus Estimate of $1.15. The bottom line improved 0.9% year over year. Revenues of $321 million missed the Zacks Consensus Estimate of $321.7 million but improved 2.4% year over year.
GATX Corporation Price, Consensus and EPS Surprise
GATX Corporation price-consensus-eps-surprise-chart | GATX Corporation Quote
Lease revenues of $292.4 million grew 2.9% year over year. While Marine operating revenues decreased 4% to $4.8 million, revenues from other sources fell 3.3% to $23.8 million.
Total expenses (on a reported basis) declined by $0.1 million to $233.5 million.
Profits in the Rail North American segment declined to $64.3 million from $66.5 million a year ago. The renewal lease rate change of GATX’s Lease Price Index (LPI) was 37.5% in the reported quarter against the year-ago quarter’s -8.1%. The average lease renewal term for cars included in the LPI was 33 months compared with 32 months a year ago.
Rail North America’s wholly-owned fleet consisted of approximately 111,500 rail cars at the end of Sep 30, 2022. Fleet utilization was 99.6% compared with 99.2% at the end of third-quarter 2021.
In the Rail International segment, profits fell 46.2% year over year to $14.5 million in the third quarter. Results were unfavorably impacted by foreign currency exchange rate fluctuations, partially offset by more railcars on lease.
GATX Rail Europe’s fleet totaled around 27,700 rail cars at the end of the quarter. Fleet utilization was 99.4% in the reported quarter compared with 98.1% at the end of third-quarter 2021.
The Portfolio Management unit reported a segmental profit of $11.2 million in the third quarter compared with $6.2 million in the year-ago quarter.
As of Sep 30, 2022, GATX had cash and cash equivalents of $596.3 million compared with $180.3 million at the end of June 2022.
GATX anticipates full-year earnings at the upper end of its announced guidance of $5.60-$6.00 per share. The Zacks Consensus Estimate of $5.95 lies within the guidance.
Currently, GATX carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Transportation Companies
Delta AirLines’DAL third-quarter 2022 earnings (excluding 42 cents from non-recurring items) of $1.51 per share fell short of the Zacks Consensus Estimate of $1.56. Escalated operating expenses induced the earnings miss. Multiple flight cancelations and booking weaknesses due to Hurricane Ian also hurt results. DAL reported earnings of 30 cents per share a year ago, dull in comparison to the current scenario, as air-travel demand was not so buoyant then.
DAL reported revenues of $13,975 million, which lagged the Zacks Consensus Estimate of $14,157.2 million. Driven by the high air-travel demand, total revenues increased more than 52% on a year-over-year basis.
United Airlines’ UAL third-quarter 2022 earnings (excluding 5 cents from non-recurring items) of $2.81 per share beat the Zacks Consensus Estimate of $2.21 and our estimate of $2.17. An upbeat in air-travel demand aided results.
In the year-ago quarter, UAL incurred a loss of $1.02 per share when air-travel demand was not as buoyant as in the current scenario. The third quarter of 2022 was the second consecutive profitable quarter at UAL since the onset of the pandemic.
Operating revenues of $12,877 million beat the Zacks Consensus Estimate of $12,709.5 million and our estimate of $12, 631.6 million. UAL’s revenues increased more than 66% year over year owing to an upbeat in air-travel demand. The optimistic air-travel demand scenario is also evident from the fact that total operating revenues increased 13.2% from third-quarter 2019 (pre-coronavirus) levels.
J.B. Hunt Transport Services, Inc. JBHT reported better-than-expected third-quarter 2022 results, wherein both earnings and revenues outperformed the Zacks Consensus Estimate.JBHT’s quarterly earnings of $2.57 per share surpassed the Zacks Consensus Estimate of $2.45 and improved 36.7% year over year.
JBHT’s operating revenues of $3,838.3 million also outperformed the Zacks Consensus Estimate of $3803.4 million. The top line jumped 22.1% year over year on the back of strength across — Dedicated Contract Services, Intermodal, Truckload and Final Mile Services segments. Total operating revenues, excluding fuel surcharges, rose 12.4% year over year.
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