GATX Earnings: Here’s Why Investors are Selling Shares Now

GATX Corp. (NYSE:GMT) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 2.72%.

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GATX Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 13.04% to $0.60 in the quarter versus EPS of $0.69 in the year-earlier quarter.

Revenue: Decreased 6.1% to $272.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: GATX Corp. reported adjusted EPS income of $0.60 per share. By that measure, the company missed the mean analyst estimate of $0.70. It beat the average revenue estimate of $268.33 million.

Quoting Management: Brian A. Kenney, president and chief executive officer of GATX, said, “The North American railcar leasing market remains strong. Our fleet utilization was 97.8% at March 31, and first quarter renewal success was 80.7%, driven by high demand for tank cars. We continue to capitalize on the current market conditions by increasing lease rates and stretching lease terms. GATX’s Lease Price Index (“LPI”) was positive 30.8% for the quarter and the average renewal term for cars in the LPI was 65 months. Demand for new tank cars continues at unprecedented levels, and our scheduled deliveries through 2014 have been placed with customers on long-term leases at attractive rates.”

Key Stats (on next page)…

Revenue increased 9.36% from $249 million in the previous quarter. EPS increased 7.14% from $0.56 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.86 to a profit $0.85. For the current year, the average estimate has moved down from a profit of $3.22 to a profit of $3.21 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)