NYSE$GATX

GATX Corporation · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

GATX reported solid financial results in Q4 2022, with Rail North America exceeding segment profit expectations and Rail International performing well despite supply chain disruptions.

GATX Corporation reported Q4 2022 net income of $48.4 million, or $1.36 per diluted share. Full-year investment volume exceeded $1.0 billion for the third consecutive year. The company initiates 2023 earnings guidance of $6.50–$6.90 per diluted share.

  • Rail North America and Rail International fleet utilization remained above 99%.
  • Lease rates in North America increased sequentially for the tenth consecutive quarter.
  • Full-year investment volume exceeded $1.0 billion for the third consecutive year.
  • Company initiates 2023 earnings guidance of $6.50–$6.90 per diluted share.

Headline financials

Total Revenue

$323M

Previous: $321M+0.5%
EPS (adj)

$1.54

Previous: $1.58-2.5%
Rail North America Boxcar Utilization

99.9%

Previous: 99.7%+0.2%
Rail North America Average Active Boxcars

9.0K

Previous: 100.7K-91.0%
GRE Railcar Utilization Rate

99.3%

Previous: 98.7%+0.6%
GRE Average Active Railcars

27.7K

Previous: 26.6K+4.1%
Capital Expenditures

$1.26B

Previous: $1.13B+11.1%
Free Cash Flow

-$1.07B

Previous: -$963M-11.6%
Net Income

$48.4M

Previous: $61M-20.7%
Operating Income

$89.6M

Previous: $55M+62.9%
Gross Profit

$151M

Previous: $143M+5.3%
Cash & Equivalents

$304M

Previous: $344M-11.8%
Total Assets

$10.1B

Previous: $9.54B+5.6%
Stock-Based Comp

$12.7M

Previous: $17.4M-27.0%

Revenue & EPS history

GATX · Revenue · Quarterly

$323M

Q4 2022+0.5%vs Q4 2021
Beat estimate in 9 of 14 quarters(64%)
ActualEstimate

Revenue by segment

GATX · $301M total across 2 segments · Q4 2022

  • Rail North America
    $231M+3.3%
  • Rail International
    $69.4M-3.2%

Forward guidance

GATX expects the railcar leasing environment in North America to remain favorable in 2023. They project slightly higher segment profit at Rail North America. Rail International's 2023 segment profit is expected to increase. Earnings from RRPF driven by ongoing improvements in the operating environment for global air travel. Combined with increased earnings from GATX Engine Leasing, they expect Portfolio Management to generate higher segment profit in 2023.

Tailwinds

  • Railcar leasing environment in North America to remain favorable.
  • Slightly higher segment profit at Rail North America.
  • Rail International's 2023 segment profit is expected to increase.
  • Higher earnings from RRPF driven by ongoing improvements in the operating environment for global air travel.
  • Increased earnings from GATX Engine Leasing

Headwinds

  • Uncertain economic conditions in North America and Europe.
  • Continued global supply chain challenges.
  • A heightened interest rate environment.
  • Exposure to damages, fines, criminal and civil penalties, and reputational harm arising from a negative outcome in litigation, including claims arising from an accident involving transportation assets
  • Inability to maintain our transportation assets on lease at satisfactory rates due to oversupply of assets in the market or other changes in supply and demand

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 2022

Historical avgQ4 2022

+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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