NYSE$GATX

GATX Corporation · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

GATX's Q4 2020 earnings were impacted by challenging market conditions in Rail North America and the pandemic's effect on Portfolio Management, but the company maintained high fleet utilization and controlled costs.

GATX reported a net income from continuing operations of $17.8 million, or $0.50 per diluted share, for the fourth quarter of 2020. Despite challenges in Rail North America and Portfolio Management, the company maintained high fleet utilization and focused on cost control. Full-year investment volume was over $1.0 billion, reflecting strategic investments in attractively priced assets.

  • Net income from continuing operations was $17.8 million or $0.50 per diluted share in Q4 2020.
  • Rail North America maintained high fleet utilization at 98.1% despite difficult market conditions.
  • Rail International experienced strong demand and increased profitability due to growth in Europe and India.
  • GATX invested over $1.0 billion in 2020, including the acquisition of Trifleet and investments in aircraft spare engines.

Headline financials

Total Revenue

$305M

Previous: $357M-14.5%
EPS (adj)

$0.50

Previous: $1.36-63.2%
Rail North America Boxcar Fleet

14.3K

Previous: 15.3K-6.2%
Rail North America Boxcar Utilization

95.8%

Previous: 95.0%+0.8%
Rail North America Average Active Boxcars

101.7K

No prior period
GRE Railcar Fleet

26.3K

Previous: 24.6K+7.3%
GRE Railcar Utilization Rate

98.1%

Previous: 99.3%-1.2%
GRE Average Active Railcars

25.7K

Previous: 24.2K+6.0%
Capital Expenditures

$219M

Previous: $219M+0.1%
Free Cash Flow

-$84.7M

Previous: -$53.7M-57.7%
Net Income

$17.8M

Previous: $56.6M-68.6%
Operating Income

$73.6M

No prior period
Gross Profit

$129M

Previous: $131M-1.3%
Cash & Equivalents

$292M

Previous: $151M+93.5%
Total Assets

$8.94B

Previous: $8.29B+7.9%
Stock-Based Comp

$15.6M

Previous: $12.3M+26.8%

Revenue & EPS history

GATX · Revenue · Quarterly

$305M

Q4 2020-14.5%vs Q4 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

GATX · $301M total across 2 segments · Q4 2020

  • Rail North America
    $231M-2.4%
  • Rail International
    $69.7M+16.6%

Forward guidance

GATX expects 2021 earnings to be in the range of $4.00 to $4.30 per diluted share.

Tailwinds

  • Initial signs of recovery in North America railcar leasing.
  • Lower lease revenue is expected to be offset by higher asset disposition gains and cost control in Rail North America.
  • Rail International is expected to produce higher profitability due to continued strong demand in Europe and India.
  • Continued strong demand for new and existing railcars in Europe and India.
  • Higher asset disposition gains and cost control in Rail North America.

Headwinds

  • Uncertainty in earnings estimates due to difficulty in predicting the timing of the COVID-19 pandemic's easing and an economic recovery.
  • Fleet utilization and lease rates are expected to remain under pressure from an ongoing market oversupply of railcars in North America.
  • RRPF expects to realize lower gains from asset sales.
  • Continued pressure on RRPF's customer base due to the severe reduction in global air travel.
  • Significantly lower 2021 segment profit is projected at Portfolio Management.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2020

Historical avgQ4 2020

+0.1%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+1.9%

Avg return

30 days after

46%

31 / 68 earnings

Positive

+14.2%

Q2 2018

Best reaction

-12.5%

Q3 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.7%-7.9%-14.4%
Q4 2025-0.6%+2.8%-13.4%
Q3 2025-5.7%-6.8%-11.0%
Q1 2025-4.4%-2.8%-2.8%
Q4 2024+4.5%+7.3%+4.8%
Q3 2024+5.7%+5.2%+21.3%
Q2 2024-7.3%-3.7%-4.4%
Q1 2024-3.2%-1.9%+3.9%
Q4 2023+5.5%+6.8%+6.8%
Q3 2023-3.3%-3.6%+3.6%
Q2 2023-4.0%-5.7%-10.3%
Q1 2023+0.1%+0.9%+4.9%
Q4 2022+4.4%+5.9%+0.7%
Q3 2022+5.1%+7.2%+17.2%
Q2 2022-5.1%-3.7%+2.2%
Q1 2022-6.0%-7.9%-12.6%
Q4 2021+8.2%+9.5%+9.2%
Q3 2021-4.8%-2.5%+3.6%
Q2 2021+6.0%+4.6%-0.2%
Q1 2021-1.0%+0.6%+1.3%
Q4 2020+1.5%+1.1%+4.4%
Q3 2020-0.5%+1.9%+17.2%
Q2 2020+0.6%+0.6%+4.1%
Q1 2020+5.7%+6.5%+13.0%
Q4 2019+8.4%+5.2%+6.3%
Q3 2019+4.2%+5.8%+8.2%
Q2 2019-1.0%+1.0%-2.3%
Q1 2019-3.4%-0.7%-6.2%
Q4 2018-2.6%+1.1%+4.9%
Q3 2018-12.5%-13.5%-4.9%
Q2 2018+14.2%+9.8%+7.4%
Q1 2018-1.5%-1.8%+7.4%
Q4 2017+4.7%+6.6%+8.5%
Q3 2017-4.9%-6.7%-10.4%
Q2 2017-2.1%-0.4%-4.3%
Q1 2017+1.7%+1.6%-1.5%
Q4 2016+3.9%+4.6%+4.1%
Q3 2016+3.1%+0.1%+13.2%
Q2 2016-4.6%-6.4%-5.7%
Q1 2016-0.9%
Q4 2015-0.4%
Q3 2015+3.3%
Q2 2015-0.4%
Q1 2015-1.0%
Q4 2014+0.9%
Q3 2014+2.2%
Q2 2014-5.3%
Q1 2014+1.1%
Q4 2013-0.7%
Q3 2013-2.1%
Q4 2012-2.1%
Q2 2013-0.5%
Q1 2013-1.2%
Q3 2012-1.6%
Q2 2012+1.2%
Q1 2012+2.6%
Q4 2008+1.5%
Q4 2011+1.5%
Q3 2011-4.3%
Q2 2011+7.2%
Q1 2010+1.7%
Q1 2011+2.4%
Q4 2010-6.3%
Q3 2009+0.5%
Q3 2010+0.5%
Q2 2010-0.5%
Q2 2009-0.5%
Q4 2009-0.5%

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