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Greenbrier shares surge on earnings beat, upbeat guidance

EditorAhmed Abdulazez Abdulkadir
Published 04/05/2024, 11:26 AM
© Reuters.
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LAKE OSWEGO, Ore. - The Greenbrier (NYSE:GBX) Companies, Inc. (NYSE: GBX), a prominent player in the global freight transportation market, has reported a notable second-quarter financial performance that surpassed analyst expectations.

The company announced an adjusted EPS of $1.03, which was $0.17 higher than the analyst estimate of $0.86. Revenue for the quarter reached $862.7 million, exceeding the consensus estimate of $843.28 million.

Greenbrier's success this quarter was driven by a combination of new railcar orders totaling 5,900 units valued at nearly $690 million and the delivery of 5,600 units. The company's lease fleet also grew by 500 units to 14,600, with a utilization rate of nearly 99%. Net earnings attributable to Greenbrier for the quarter were $33 million, or $1.03 per diluted share, on the reported revenue. EBITDA stood at $95 million, representing 11% of revenue.

The company's CEO and President, Lorie L. Tekorius, expressed satisfaction with the performance, citing strong momentum across their business and the achievement of consolidated gross margin in the mid-teens for the second consecutive quarter. Tekorius attributed the success to Greenbrier's broad product lineup, extensive market relationships, and supportive customer experience.

Looking ahead, Greenbrier has updated its guidance for fiscal 2024, anticipating deliveries of 23,500 to 25,000 units and revenue between $3.5 and $3.7 billion. This forecast surpasses the analyst consensus of $3.55 billion. Capital expenditures are expected to be approximately $140 million in Manufacturing and $15 million in Maintenance Services, with a gross leasing investment of around $350 million in Leasing & Management Services.

Following the announcement, Greenbrier's stock price responded positively, increasing by 4.41%, indicating a strong market reaction to the earnings and revenue beat, as well as the guidance exceeding consensus.

The company's steady performance and optimistic outlook reflect its strategic initiatives and the ability to maintain financial stability during varying market conditions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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