The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how vehicle parts distributors stocks fared in Q3, starting with GATX (NYSE:GATX).
Supply Chain and Inventory Management: A Growing Focus
Supply chain and inventory management are themes that grew in focus after COVID wreaked havoc on the global movement of raw materials and components. Transportation parts distributors that boast reliable selection in sometimes specialized areas combined 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. But 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.
The 4 Vehicle Parts Distributors Stocks We Track: A Strong Q3
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 Total Revenue
| Year | Revenue |
| --- | --- |
| 2023 | $405.4 million |
| 2022 | $358.9 million |
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.
Is Now the Time to Buy GATX?
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