Greenbrier Companies (NYSE:GBX) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Greenbrier Companies Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 8.2% to $0.56 in the quarter versus EPS of $0.61 in the year-earlier quarter.
Revenue: Decreased 14.59% to $433.7 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Greenbrier Companies reported adjusted EPS income of $0.56 per share. By that measure, the company beat the mean analyst estimate of $0.55. It missed the average revenue estimate of $503.08 million.
Quoting Management: William A. Furman, president and chief executive officer, said, “We are encouraged by the growth of our diverse backlog and robust order activity, with orders in the third quarter for 5,500 railcar units. Since quarter end, we have received orders for an additional 2,100 railcar units, including a sizable double stack intermodal order for 1,500 units, about a third of which will be delivered in fiscal 2013, and the balance in fiscal 2014. Approximately 37% of the total 7,600 units ordered since March 1, 2013 are for tank cars in North America, with the remainder of the orders in this time period consisting of a broad range of railcar types including various sizes of covered hoppers, automotive products, gondola cars and double stack intermodal cars.”
Key Stats (on next page)…
Revenue increased 2.49% from $423.17 million in the previous quarter. EPS increased 24.44% from $0.45 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.64 to a profit $0.62. For the current year, the average estimate has moved up from a profit of $1.92 to a profit of $1.97 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)