Yahoo Finance Gatx 4Q results beat Street, increases dividend
Gatx 4Q results top analysts' estimates, raises quarterly dividend by 6.5 percent
CHICAGO (AP) -- Railcar leasing company Gatx said Thursday that its fourth-quarter net income surged 80 percent, buoyed by strong North American tank car demand.
The company's results topped analysts' expectations. It also boosted its quarterly dividend by 6.5 percent and authorized more share repurchases.
The stock rose to an all-time high.
For the three months ended Dec. 31, Gatx earned $53.3 million, or $1.14 per share. That's up from $29.7 million, or 62 cents per share, a year earlier.
Revenue rose 8 percent to $356.6 million from $331.7 million. The Rail North America and Rail International segments both posted higher profits.
Analysts polled by FactSet expected earnings of 93 cents per share on revenue of $350.5 million.
Full-year net income climbed to $169.3 million, or $3.59 per share, from $137.3 million, or $2.88 per share, in the prior year. Adjusted earnings were $3.50 per share.
Annual revenue increased 7 percent to $1.32 billion from $1.24 billion.
Going forward, Gatx anticipates 2014 earnings between $3.85 and $4.05 per share. Wall Street predicts earnings of $3.59 per share, on average.
Gatx raised its quarterly dividend to 33 cents from 31 cents. The dividend will be paid on March 31 to shareholders of record on Feb. 28.
The company also said its board authorized a new stock buyback program of up to $250 million.
Shares of Gatx Corp. climbed $8.16, or 16 percent, to $59.99 in afternoon trading, an all-time high.
