GATX Corp. (GATX) Tops Q4 EPS by 10c, Revenues Beat

GATX Corp. (NYSE: GATX) reported Q4 EPS of $0.84, $0.10 better than the analyst estimate of $0.74. Revenue for the quarter came in at $356.4 million versus the consensus estimate of $347.82 million.

Brian A. Kenney, president and chief executive officer of GATX stated, “Our financial results in 2018 were significantly better than we anticipated. Capitalizing on an improved railcar leasing environment, Rail North America realized higher fleet utilization, a higher renewal success rate, and higher lease renewal rates versus our original expectations. Maintenance expense was also lower than anticipated in 2018, partially due to the difficulty that we experienced in getting customers to send their tank cars in for scheduled tank qualification work, thus deferring this expense into 2019. While we saw broad increases in market lease rates in 2018, revenue was still pressured as the renewal lease rate change for GATX’s Lease Price Index was negative 9.8% for the year.

“We executed on our strategy to invest aggressively in cost-advantaged railcars. In 2018, we entered into two long-term railcar supply agreements, for a total of 12,450 railcars to be delivered from 2019 - 2023, which will allow us to grow our asset base to meet the needs of our customers. We invested more than $730 million in the fleet in 2018, including the acquisition of a competitor’s portfolio of approximately 3,100 railcars. We continued to capitalize on strong North American secondary market demand by optimizing the fleet through railcar sales, generating significant remarketing income.

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

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