The quarterly results for GATX Corporation (NYSE:GATX) were released last week, making it a good time to revisit its performance. The result was positive overall - although revenues of US$431m were in line with what the analysts predicted, GATX surprised by delivering a statutory profit of US$2.06 per share, modestly greater than expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
After the latest results, the three analysts covering GATX are now predicting revenues of US$1.72b in 2025. If met, this would reflect a reasonable 3.2% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be US$8.65, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of US$1.72b and earnings per share (EPS) of US$8.62 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
View our latest analysis for GATX
The analysts reconfirmed their price target of US$181, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic GATX analyst has a price target of US$182 per share, while the most pessimistic values it at US$180. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of GATX'shistorical trends, as the 6.5% annualised revenue growth to the end of 2025 is roughly in line with the 6.7% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 7.1% per year. It's clear that while GATX's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at US$181, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on GATX. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple GATX analysts - going out to 2027, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 3 warning signs for GATX you should be aware of, and 1 of them is significant.
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