Greenbrier Posts Upbeat Q2 Results, Lifts FY15 Outlook

Shares of

jumped more than 7% in pre-market trading after the company reported better-than-expected results for the fiscal second quarter and lifted its outlook for its fiscal year. For the fiscal year, the company now projects earnings of $5.65 to $5.95 per share, versus its earlier forecast of $5.20 to $5.50 per share. It now projects revenue of $2.6 billion to $2.7 billion, versus its prior outlook of $2.6 billion. The Lake Oswego, Oregon-based company posted a quarterly profit of $50.4 million, or $1.57 per share, versus a year-ago profit of $15.6 million, or $0.50 per share. Its revenue climbed 25.5% to $630.2 million. However, analysts were projecting earnings of $1.20 per share on revenue of $613.9 million. Its gross margin rose to 19.9% from 11.5%. New railcar deliveries jumped to 5,200 units in the latest quarter, compared to 4,000 units for the quarter ended November 30, 2014. As of February 28, 2015, new railcar backlog was 46,000 units with an estimated value of $4.78 billion, versus 41,200 units with an estimated value of $4.20 billion as of November 30, 2014. During the quarter, the company repurchased 483,983 shares of common stock at a cost of $23.8 million. William A. Furman, Chairman and CEO, said, "Our record results this quarter, including margin expansion and earnings growth, reflect the soundness of our diversified and integrated business model, improved business execution and greater scale. Our aggregate gross margin in the second quarter grew to 19.9%, nearly twice last year's level; at the same time we continue to execute on ramping up production on new manufacturing lines." The average estimate among 10 Estimize users was for earnings of $1.22 per share and revenue of $626.97 million. Greenbrier shares surged 7.26% to $65.00 in pre-market trading.