The end of the earnings season is always an excellent time to step back, take stock, and see who shone (and who didn’t so much). Let’s dive into how vehicle parts distributors stocks fared in Q3, starting with GATX (NYSE:GATX).
Supply Chain and Inventory Management: The New Normal
Supply chain and inventory management have become increasingly prominent themes following the COVID-19 pandemic’s disruption to global raw material and component movement. Transportation parts distributors that boast reliable selection in specialized areas and quickly deliver products to customers can benefit from this theme. Additionally, distributors who earn meaningful revenue streams from aftermarket products can enjoy more steady top-line trends and higher margins.
However, like the broader industrials sector, transportation parts distributors are also at the whim of economic cycles that impact capital spending, transportation volumes, and demand for discretionary parts and components.
Vehicle Parts Distributors Stocks: Q3 Performance
The 4 vehicle parts distributors stocks we track reported a very strong Q3. As a group, revenues beat analysts’ consensus estimates by an impressive 4.8%.
Thankfully, share prices of the companies have been resilient as they are up 6.7% on average since the latest earnings results.
Best Q3: GATX (NYSE:GATX)
Originally founded to ship beer, GATX (NYSE:GATX) provides leasing and management services for railcars and other transportation assets globally.
Q3 Earnings Results
- Revenues: $405.4 million
- Year-over-year growth: 12.6%
- Analysts’ expectations beat: 3.5%
Overall, it was a stunning quarter for the company with an impressive beat of analysts’ EPS estimates and full-year EPS guidance beating analysts’ expectations.
Stock Performance
The stock is up 16.7% since reporting and currently trades at $152.83.
Is Now the Time to Buy GATX?
Access our full analysis of the earnings results here, it’s free.
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FTA Aviation (NASDAQ:FTAI)
With a focus on the CFM56 engine that powers Boeing and Airbus’s planes, FTAI Aviation (NASDAQ:FTAI) sells, leases, maintains, and repairs aircraft engines.
Q3 Earnings Results
- Revenues: $465.8 million
- Year-over-year growth: 60%
- Analysts’ expectations beat: 10.8%
The business had a very strong quarter with an impressive beat of analysts’ EBITDA estimates and a decent beat of analysts’ EPS estimates.
Stock Performance
FTAI Aviation scored the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 8.9% since reporting. It currently trades at $157.97.
Is Now the Time to Buy FTAI Aviation?
Access our full analysis of the earnings results here, it’s free.
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Weakest Q3: Air Lease (NYSE:AL)
Established by a founder of Century City in Los Angeles, Air Lease Corporation (NYSE:AL) provides aircraft leasing and financing solutions to airlines worldwide.
Q3 Earnings Results
- Revenues: $690.2 million
- Year-over-year growth: 4.7%
- Analysts’ expectations beat: 2.1%
It may have had the worst quarter among its peers, but its results were still good as it also locked in an impressive beat of analysts’ EBITDA and EPS estimates.
Stock Performance
Air Lease delivered the weakest performance against analyst estimates in the group. The stock is down 5.3% since reporting and currently trades at $53.49.
Is Now the Time to Buy Air Lease?
Access our full analysis of the earnings results here, it’s free.
[Insert link to analysis]
Investing in Winners with Rock-Solid Fundamentals
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Disclaimer
The information provided is for general informational purposes only and should not be considered as investment advice. Investing in the stock market involves risk, and you may lose some or all of your investment.
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