The end of the earnings season is always an excellent opportunity to step back and assess which companies shone brightly (and which ones not so much). Let’s take a closer look at how vehicle parts distributors stocks performed in Q3, starting with GATX (NYSE:GATX).
Supply Chain and Inventory Management Take Center Stage
The COVID-19 pandemic wreaked havoc on the global movement of raw materials and components, making supply chain and inventory management increasingly important themes. Transportation parts distributors that boast a reliable selection in specialized areas combined with quick delivery capabilities can benefit from this trend. Additionally, distributors who generate meaningful revenue streams from aftermarket products can enjoy more stable top-line trends and higher margins. However, like the broader industrials sector, transportation parts distributors are also susceptible to economic cycles impacting capital spending, transportation volumes, and demand for discretionary parts and components.
A Strong Q3 Performance
The four vehicle parts distributors stocks we track reported a very strong Q3 performance. As a group, revenues beat analysts’ consensus estimates by 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. GATX reported revenues of $405.4 million, up 12.6% year on year. This print exceeded analysts’ expectations by 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.
GATX Total Revenue
Interestingly, 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.
FTAI 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. FTAI Aviation reported revenues of $465.8 million, up 60% year on year, outperforming analysts’ expectations by 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.
FTAI Aviation Total Revenue
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.
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. Air Lease reported revenues of $690.2 million, up 4.7% year on year, exceeding analysts’ expectations by 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.
Air Lease
Air Lease delivered the weakest performance against analyst estimates in the group. The stock is flat since the results and currently trades at $47.48.
Read our full analysis of Air Lease’s results here.
Rush Enterprises (NASDAQ:RUSHA)
With a focus on providing transportation services to the industrial and construction sectors, Rush Enterprises (NASDAQ:RUSHA) reported revenues of $1.4 billion, up 8.5% year on year. While this growth rate is slower than its peers, Rush Enterprises has demonstrated consistent performance in recent quarters.
Market Outlook for 2025
The pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes are still uncertain factors that could impact the market outlook for 2025.
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