The Transportation group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Gatx (GATX) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Transportation sector should help us answer this question.Gatx is a member of the Transportation sector. This group includes 132 individual stocks and currently holds a Zacks Sector Rank of #12. The Zacks Sector Rank considers 1 ...

shaunl/iStock via Getty Images Thesis In the eight years since 2016, the shares of GATX Corporation (NYSE:GATX) have roughly tripled: Data by YCharts It has been a bumpy ride at times, but shareholders with a long-term perspective have been well rewarded. In addition, the company has grown its dividend every year for the past 13 years. An analysis of its fundamental data suggests those capital gains will continue, with GATX enjoying strong utilization rates and pricing growth. At the same time, it is a rela ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________________________ FORM 10-Q __________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 1-2328 GATX Corporation (Exact name of registrant as specified in its charter) New York 36-1 ...

[Financial and Operational Highlights](index=1&type=section&id=GATX%20CORPORATION%20REPORTS%202024%20FIRST-QUARTER%20RESULTS) [Overall Performance](index=1&type=section&id=Overall%20Performance) Net income slightly decreased, but strong operational metrics and full-year guidance were maintained Q1 2024 vs. Q1 2023 Financial Results | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net Income | $74.3 million | $77.4 million | | Diluted EPS | $2.03 | $2.16 | | Diluted EPS (Non-GAAP) | $2.01 | $2.20 | - The company continues to see solid global demand for most railcar types, with Rail North America's fleet utilization at a high of **99.4%** and a strong renewal success rate of **83.4%**[3](index=3&type=chunk) - The renewal lease rate change, as measured by the Lease Price Index (LPI), was a positive **33%** with an average renewal term of **64 months**[3](index=3&type=chunk) - The company's 2024 full-year earnings estimate remains unchanged at **$7.30–$7.70 per diluted share**, excluding certain adjustments[4](index=4&type=chunk) - First-quarter investment volume totaled **$378.6 million**, with favorable investment prospects for the remainder of 2024[4](index=4&type=chunk)[5](index=5&type=chunk) [Segment Performance](index=2&type=section&id=Segment%20Performance) [Rail North America](index=2&type=section&id=RAIL%20NORTH%20AMERICA) Segment profit decreased due to lower asset disposition gains and higher interest expense, despite strong operational metrics Rail North America Segment Profit (in millions) | Period | Segment Profit | | :--- | :--- | | Q1 2024 | $90.3 | | Q1 2023 | $95.2 | Key Performance Indicators (Q1 2024 vs. Q1 2023) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Fleet Utilization | 99.4% | 99.3% | | Lease Price Index (LPI) | +33.0% | +28.3% | | Avg. Renewal Term | 64 months | 55 months | | Renewal Success Rate | 83.4% | 77.9% | - The wholly owned fleet totaled approximately **111,400 cars** as of March 31, 2024, including **9,670 boxcars**[7](index=7&type=chunk) - Investment volume for the segment was **$321.7 million** during the first quarter[8](index=8&type=chunk) [Rail International](index=2&type=section&id=RAIL%20INTERNATIONAL) Segment profit increased due to more railcars on lease, with GATX Rail Europe's utilization slightly declining and Rail India maintaining 100% utilization amid fleet expansion Rail International Segment Profit (in millions) | Period | Segment Profit | | :--- | :--- | | Q1 2024 | $28.8 | | Q1 2023 | $23.5 | GATX Rail Europe (GRE) Fleet Statistics | Metric | March 31, 2024 | March 31, 2023 | | :--- | :--- | :--- | | Fleet Size | >29,300 cars | ~28,461 cars | | Utilization | 95.3% | 98.5% | Rail India Fleet Statistics | Metric | March 31, 2024 | March 31, 2023 | | :--- | :--- | :--- | | Fleet Size | >9,500 cars | ~6,351 cars | | Utilization | 100% | 100% | [Engine Leasing](index=2&type=section&id=ENGINE%20LEASING) The Engine Leasing segment reported a decrease in segment profit primarily due to lower earnings from RRPF affiliates, despite robust demand for aircraft spare engines - The business segment was renamed from "Portfolio Management" to "Engine Leasing" after the company sold all its marine assets as of December 31, 2023[13](index=13&type=chunk) Engine Leasing Segment Profit (in millions) | Period | Segment Profit | | :--- | :--- | | Q1 2024 | $25.7 | | Q1 2023 | $28.3 | - The lower segment profit in Q1 2024 was driven by reduced earnings at the RRPF affiliates, specifically from lower remarketing income[14](index=14&type=chunk) - Demand for aircraft spare engines remains robust, driven by strong global air passenger traffic, with plans to add new engines to the wholly owned portfolio at a level similar to 2023[4](index=4&type=chunk) [Financial Statements](index=7&type=section&id=Financial%20Statements) [Consolidated Statements of Income](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20INCOME) Total revenues increased, but higher operating expenses, interest costs, and lower asset disposition gains led to a decrease in net income for Q1 2024 Key Income Statement Items (in millions) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Total Revenues | $379.9 | $338.9 | | Total Expenses | $265.9 | $246.1 | | Net gain on asset dispositions | $36.2 | $47.1 | | Interest expense, net | $(77.8) | $(59.0) | | Net Income | $74.3 | $77.4 | [Consolidated Balance Sheets](index=8&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) Total assets and liabilities increased as of March 31, 2024, primarily driven by growth in operating assets and recourse debt, while shareholders' equity also grew Key Balance Sheet Items (in millions) | Line Item | March 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total Assets | $11,579.1 | $11,326.0 | | Total Liabilities | $9,254.8 | $9,053.0 | | Total Shareholders' Equity | $2,324.3 | $2,273.0 | [Segment Data](index=9&type=section&id=SEGMENT%20DATA) Rail North America was the primary revenue and profit driver in Q1 2024, contributing significantly to the total investment volume, while asset remarketing income decreased Q1 2024 Segment Profit and Investment Volume (in millions) | Segment | Segment Profit | Investment Volume | | :--- | :--- | :--- | | Rail North America | $90.3 | $321.7 | | Rail International | $28.8 | $49.9 | | Engine Leasing | $25.7 | $0.0 | | Other | $8.2 | $7.0 | | **Total** | **$153.0** | **$378.6** | Asset Remarketing Income (in millions) | Period | Asset Remarketing Income | | :--- | :--- | | Q1 2024 | $33.8 | | Q1 2023 | $44.9 | [Supplemental Information](index=11&type=section&id=SUPPLEMENTAL%20INFORMATION) [Reconciliation of GAAP to Non-GAAP Measures](index=11&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) The company provides non-GAAP financial measures to offer a comparable view of its underlying operational performance, with Q1 2024 GAAP net income adjusted for a net positive impact from other items Reconciliation of Net Income (in millions) | Description | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net income (GAAP) | $74.3 | $77.4 | | Adjustments | $(0.6) | $1.3 | | Net income, excluding items (non-GAAP) | $73.7 | $78.7 | - Adjustments in Q1 2024 relate to gains on the sale of Specialized Gas Vessels, while Q1 2023 adjustments related to losses on these vessels and a gain on the sale of the Rail Russia business[31](index=31&type=chunk) [Key Financial Metrics and Fleet Statistics](index=12&type=section&id=Key%20Financial%20Metrics%20and%20Fleet%20Statistics) This section provides detailed quarterly data on segment assets, debt, leverage, and specific operational statistics for the rail segments, offering a deeper view into the company's financial health and fleet dynamics [Assets, Debt, and Leverage](index=12&type=section&id=Assets%2C%20Debt%2C%20and%20Leverage) Total assets excluding cash increased as of Q1 2024, with Rail North America holding the largest portion, and recourse leverage remained stable Total Assets, Excluding Cash, by Segment (in millions) | Segment | 3/31/2024 | 3/31/2023 | | :--- | :--- | :--- | | Rail North America | $7,214.1 | $6,610.8 | | Rail International | $2,142.1 | $1,801.2 | | Engine Leasing | $1,354.4 | $1,089.6 | | Other | $389.3 | $368.9 | | **Total** | **$11,099.9** | **$9,870.5** | - Recourse leverage, calculated as total recourse debt divided by shareholder's equity, was **3.2x** at the end of Q1 2024, stable with the prior quarter and up from **3.1x** at the end of Q1 2023[34](index=34&type=chunk)[35](index=35&type=chunk) [Rail North America Statistics](index=13&type=section&id=Rail%20North%20America%20Statistics) Key operational metrics for Rail North America showed continued strength in Q1 2024, with a strong Lease Price Index, high renewal success rate, and consistent fleet utilization Rail North America Key Metrics (Quarterly Trend) | Metric | 3/31/2024 | 12/31/2023 | 3/31/2023 | | :--- | :--- | :--- | :--- | | LPI | 33.0% | 33.5% | 28.3% | | Renewal Term (months) | 64 | 65 | 55 | | Renewal Success Rate | 83.4% | 87.1% | 77.9% | | Utilization | 99.4% | 99.3% | 99.3% | - The non-boxcar fleet grew by a net of **520 cars** during Q1 2024, ending the period at **101,687 railcars**[39](index=39&type=chunk) [Rail International Statistics](index=14&type=section&id=Rail%20International%20Statistics) GATX Rail Europe's fleet utilization decreased slightly despite fleet growth, while Rail India continued its impressive expansion and maintained 100% utilization Rail Europe Statistics | Metric | 3/31/2024 | 3/31/2023 | | :--- | :--- | :--- | | Ending Fleet Size | 29,371 | 28,461 | | Utilization | 95.3% | 98.5% | Rail India Statistics | Metric | 3/31/2024 | 3/31/2023 | | :--- | :--- | :--- | | Ending Fleet Size | 9,501 | 6,351 | | Utilization | 100.0% | 100.0% | [Company Information and Forward-Looking Statements](index=4&type=section&id=Company%20Information%20and%20Forward-Looking%20Statements) [Company Description and Investor Information](index=4&type=section&id=Company%20Description%20and%20Investor%20Information) This section describes GATX's business of leasing transportation assets and includes investor details, along with a disclaimer about forward-looking statements and associated risks - GATX leases transportation assets including railcars, aircraft spare engines, and tank containers to customers worldwide[15](index=15&type=chunk) - The report contains forward-looking statements that involve known and unknown risks and uncertainties, which could cause actual results to differ materially from those discussed[18](index=18&type=chunk) - Key risk factors include declines in customer demand, inability to lease assets at satisfactory rates, competitive factors, and risks related to international operations and cybersecurity[19](index=19&type=chunk)

Investors might want to bet on Gatx (GATX) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.Since a chan ...

For those looking to find strong Transportation stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Gatx (GATX) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Transportation sector should help us answer this question.Gatx is one of 132 individual stocks in the Transportation sector. Collectively, these companies sit at #12 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 differe ...

United Parcel Service (UPS) gains momentum from e-commerce growth and shareholder rewards. However, elevated labor costs and weakened demand impact stock performance.Factors Favoring UPSUPS demonstrates financial strength with a robust $5.3 billion free cash flow in 2023. Shareholder-friendly actions, including a 15th consecutive annual dividend increase and a $5 billion share repurchase authorization, bode well. In 2024, UPS’ board of directors raised its quarterly cash dividend to $1.63 per share. For the ...

GATX Corporation (GATX) is benefiting from its shareholder-friendly initiatives through which it rewards its shareholders in the form of dividend payments and share repurchases.Against this backdrop, let’s look at the factors that make this stock an attractive pick.What Makes GATX an Attractive Pick?An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run on the bourse in the past year. Shares of GATX have gained 15.5% over the past three months.Image Source: ...

It has been about a month since the last earnings report for Gatx (GATX) . Shares have added about 1.8% in that time frame, underperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Gatx due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Earnings Beat in Q4 at GATXGATX Corporation’s fourth-quar ...

The Zacks  Transportation - Equipment and Leasing industry currently stands to benefit from the solid investor-friendly steps. Notably, consistent shareholder-friendly initiatives in the form of dividend payouts or share buybacks imply solid financial strength of companies in the Equipment and Leasing industry. Such moves boost investors’ confidence and positively impact the bottom line.On the flip side, the industry continues to grapple withchallenges, ranging from raging inflation, higher interest rates, ...