Market Overview

Greenbrier Misses Q3 Views


Shares of Greenbrier Companies Inc (NYSE: GBX) dropped over 2 percent in pre-market trading after the company reported weaker-than-expected results for its fiscal third quarter.

The Lake Oswego, Oregon-based company posted quarterly net income of $42.8 million, or $1.33 per share, compared to $33.6 million, or $1.03 per share, in the year-ago period. Excluding non-recurring items, the company earned $1.49 per share.

Its revenue gained 20.4 percent year-over-year to $714.6 million. However, analysts were expecting earnings of $1.63 per share on revenue of $740.66 million.

The average estimate among 17 Estimize users was for earnings of $1.65 per share and revenue of $742.81 million.

As of May 31, 2015, new railcar backlog was 45,100 units with an estimated value of $4.86 billion, versus 46,000 units with an estimated value of $4.78 billion as of February 28, 2015.

The company's board declared a quarterly dividend of $0.15 per share.

During the quarter, Greenbrier repurchased 28,363 shares of common stock at a cost of $1.5 million.

William A. Furman, Chairman and CEO, said, "Our diversified and integrated business model continues to pay off, with record revenue, adjusted EBITDA and deliveries this quarter. Aggregate gross margin grew to 20.9%, led by execution from our manufacturing and lease syndication businesses. We achieved our goal of at least 20% aggregate margin a full year ahead of plan despite an abrupt decline in scrap metal prices which adversely affected our wheel services business."

For the full year, Greenbrier narrowed its earnings forecast of $5.70 to $5.85 per share, versus its earlier forecast of $5.65 to $5.95 per share. The company reaffirmed its revenue outlook of $2.6 billion to $2.7 billion.

Greenbrier shares fell 2.67 percent to $45.60 in pre-market trading.

Posted-In: profitEarnings News Guidance


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