Earnings Outlook For GATX

GATX GATX is gearing up to announce its quarterly earnings on Tuesday, 2024-10-22. Here's a quick overview of what investors should know before the release.

Analysts are estimating that GATX will report an earnings per share (EPS) of $1.85.

GATX bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Past Earnings Performance

In the previous earnings release, the company missed EPS by $0.34, leading to a 0.39% increase in the share price the following trading session.

Here's a look at GATX's past performance and the resulting price change:

Tracking GATX's Stock Performance

Shares of GATX were trading at $133.64 as of October 18. Over the last 52-week period, shares are up 27.45%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Analyst Insights on GATX

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding GATX.

Analysts have provided GATX with 1 ratings, resulting in a consensus rating of Neutral. The average one-year price target stands at $140.0, suggesting a potential 4.76% upside.

Comparing Ratings with Peers

In this comparison, we explore the analyst ratings and average 1-year price targets of MSC Industrial Direct Co, Herc Hldgs and Air Lease, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for MSC Industrial Direct Co, with an average 1-year price target of $91.0, suggesting a potential 31.91% downside.
• For Herc Hldgs, analysts project an Neutral trajectory, with an average 1-year price target of $177.5, indicating a potential 32.82% upside.
• The consensus among analysts is an Outperform trajectory for Air Lease, with an average 1-year price target of $53.0, indicating a potential 60.34% downside.

Comprehensive Peer Analysis Summary

Within the peer analysis summary, vital metrics for MSC Industrial Direct Co, Herc Hldgs and Air Lease are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

GATX ranks in the middle for consensus rating among its peers. It ranks at the bottom for revenue growth. In terms of gross profit, GATX is at the top among its peers. For return on equity, GATX is at the bottom compared to its peers.

Get to Know GATX Better

GATX Corp is a provider of railcar leasing and maintenance services. GATX operates four business segments: rail North America, rail international, and portfolio management. The rail business offers railcar leasing and maintenance, as well as asset-related, financial, and management services. The company owns and leases fleets in North America, Europe, and Asia, which consist of tank and freight railcars. Industries served include refining and petroleum, chemicals and plastics, railroads and other transportation, mining, and food and agriculture.

Breaking Down GATX's Financial Performance

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Positive Revenue Trend: Examining GATX's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 12.67% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Industrials sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: GATX's net margin is impressive, surpassing industry averages. With a net margin of 11.48%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): GATX's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.9% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): GATX's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.37%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: GATX's debt-to-equity ratio is notably higher than the industry average. With a ratio of 3.61, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

To track all earnings releases for GATX visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.