GATX Corp. (GATX) Tops Q1 EPS by 32c; Maintains Outlook

GATX Corp. (NYSE: GATX) reported Q1 EPS of $1.44, $0.32 better than the analyst estimate of $1.12. Revenue for the quarter came in at $316.1 million versus the consensus estimate of $309.88 million.

GUIDANCE:

GATX Corp. maintains FY2017 EPS of $4.40-$4.60.

Brian A. Kenney, president and chief executive officer of GATX, stated, “For the second consecutive quarter, North American car loadings increased and railroad velocity decreased on a year over year basis. However, continued railcar oversupply, a large railcar manufacturing backlog, and low fleet utilization among certain competitors combined to prevent general lease rate improvement in the first quarter.

“Consequently, while GATX’s fleet utilization increased to 99.1% in the quarter, the renewal lease rate change of GATX’s Lease Price Index decreased by 32.6%, with an average renewal term of 29 months. Our renewal success rate was excellent at 72.4%. Our commercial team effectively deployed railcars and displaced competitors’ railcars despite the idle capacity in the industry.

“Rail International continues to produce solid operating results. GATX Rail Europe maintained high fleet utilization of 95.0% despite railcar oversupply in the petroleum market. We continue to upgrade customers’ fleets with new railcars, while successfully assigning displaced, older cars to new customers. American Steamship Company’s sailing season began at the end of March, and ten vessels are currently scheduled to operate in 2017. The Rolls-Royce and Partners Finance affiliates continue to perform very well. Demand for spare aircraft engines remains solid across the fleet, and 2017 investment prospects are positive.”

Mr. Kenney concluded, “The year is progressing as we expected, and therefore at this time our 2017 full-year earnings estimate is unchanged at $4.40 - $4.60 per diluted share.”

For earnings history and earnings-related data on GATX Corp. (GATX) click here.

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