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GATX (GATX) Reports Earnings Tomorrow: What To Expect

GATX Cover Image

Leasing services company GATX (NYSE: GATX) will be reporting earnings this Tuesday before market open. Here’s what to look for.

GATX beat analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $421.6 million, up 11% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EBITDA estimates. It reported 103,310 active railcars, up 1.6% 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 10.4% year on year to $427.1 million, slowing from the 12.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.01 per share.

GATX Total Revenue

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 1.8% on average.

Looking at GATX’s peers in the industrial distributors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Fastenal delivered year-on-year revenue growth of 8.6%, beating analysts’ expectations by 0.5%, and Richardson Electronics reported revenues up 9.5%, falling short of estimates by 3.7%. Fastenal traded up 4.2% following the results while Richardson Electronics was also up 10.9%.

Read our full analysis of Fastenal’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 6.8% on average over the last month. GATX’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $180.33 (compared to the current share price of $153.47).

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