Textainer Stock Gains After Q2 Earnings Beat Expectations

Textainer Group Holdings Limited TGH reported second-quarter Lease rental income growth of ~30% year-over-year to $187.43 million, beating the consensus estimate of $186.63 million.

• Adjusted EPS improved to $1.48 from $0.28 in 2Q20, beating consensus estimates of $1.19.
• The second quarter's average and ending utilization rate was 99.8% vs. 95.4% a year ago.
• Due to an increase in per-unit margin, the trading container margin increased by $2.1 million from the first quarter of 2021.
• Net gain on sale of owned fleet containers increased to $18.36 million from $5.64 million in 2Q20.
• Adjusted EBITDA was $178.45 million, compared to $109.98 million in 2Q20, reflecting benefits from ongoing cost optimization initiatives and the favorable Lease and resale environment.
• Textainer repurchased 615,680 shares at an average price of $29.84 per share in Q2.
• Textainer generated operating cash a YTD flow of $274.01 million, compared to $188.22 million a year ago.
• The company invested $501 million in containers delivered during the second quarter.
• The company priced $600 million of fixed-rate asset-backed notes on August 3, 2021, with a blended interest rate of 1.99% and an 11-year tenor, expected to close on August 11, 2021.
• Textainer placed additional orders for over $600 million of containers for delivery during Q3, focusing on higher profitability and committed leases offering long tenors.
• Price Action: TGH shares are trading higher by 5.23% at $34.42 during the premarket session on the last check Friday.