Leasing services company GATX (NYSE:GATX) will be reporting earnings tomorrow before market hours. Here’s what you need to know.
GATX beat analysts’ revenue expectations by 3.5% last quarter, reporting revenues of $405.4 million, up 12.6% year on year. It was a stunning quarter for the company, with an impressive beat of analysts’ EPS estimates and full-year EPS guidance beating analysts’ expectations. It reported 102,697 active railcars, up 2% year on year.
Is GATX a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting GATX’s revenue to grow 11.2% year on year to $409.8 million, slowing from the 14.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.71 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 only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.7% 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. MSC Industrial’s revenues decreased 2.7% year on year, beating analysts’ expectations by 2.6%, and Fastenal reported revenues up 3.7%, falling short of estimates by 0.9%. MSC Industrial’s stock price was unchanged after the results, while Fastenal was up 1.8%.
Read our full analysis of MSC Industrial’s results here and Fastenal’s results here.
There has been positive sentiment among investors in the industrial distributors segment, with share prices up 5.3% on average over the last month. GATX is down 2.1% during the same time and is heading into earnings with an average analyst price target of $164.33 (compared to the current share price of $154.33).
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