Greenbrier Companies Earnings: Here’s Why the Stock is Down Now

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. Shares are down 5.3%.

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Greenbrier Companies Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 14.04% to $0.49 in the quarter versus EPS of $0.57 in the year-earlier quarter.

Revenue: Decreased 7.64% to $423.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Greenbrier Companies reported adjusted EPS income of $0.49 per share. By that measure, the company beat the mean analyst estimate of $0.37. It missed the average revenue estimate of $442.91 million.

Quoting Management: William A. Furman, president and chief executive officer said, “Our business momentum continues to improve, validating the strength of our integrated business model. Our strategy is to diversify our product offerings, shift production to our lower cost manufacturing footprint in Mexico, and increase throughput in our lease syndication and management services businesses. Since September 1, 2012, we have received diverse orders for 9,600 railcars in North America and Europe valued at over $1 billion.”

Key Stats (on next page)…

Revenue increased 1.89% from $415.37 million in the previous quarter. EPS increased 40% from $0.35 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.57 and has not changed. For the current year, the average estimate has moved up from a profit of $1.88 to a profit of $1.92 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)