Textainer Group Holdings (TGH) Reports Q4 EPS of 22c, Offers Outlook

Textainer Group Holdings (NYSE: TGH) reported Q4 EPS of $0.22, may not compare to the analyst estimate of $0.42. Revenue for the quarter came in at $129.3 million versus the consensus estimate of $132.09 million.

Outlook

“The outlook for 2016 remains challenging for many of the same reasons that affected our 2015 results. Improved performance depends largely on an increase in demand, container prices and/or interest rates, none of which seems likely in the near term. Maturing leases that are extended will continue to be repriced at lower rental rates and container impairments are likely to remain high until resale prices improve. We expect these factors combined will lead to reduced financial results in 2016,” continued Mr. Brewer.

“It is important to keep in mind that our industry is and has always been cyclical. We have been in business for 36 years and have successfully managed through many cycles. We have the least leverage and the lowest operating costs of any of our public competitors. 85% of our fleet is subject to long-term or finance leases with an average remaining term of 40 months. As we have been a consistent buyer of containers over the years, only 8.5% of our term leases mature in 2016. We are well positioned for the challenges we face. Additionally, containers purchased at today’s prices are expected to generate attractive returns over their lives,” concluded Mr. Brewer.

For earnings history and earnings-related data on Textainer Group Holdings (TGH) click here.

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