Railcar Giant Greenbrier Faces Setback In Q3 - Can New Railcar Orders Turn the Tide?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 08 2024
0mins
Should l Buy GBX?
Source: Benzinga
Greenbrier Companies Q3 FY24 Results:
- Revenue declined to $820.2 million, missing consensus.
- Lease fleet utilization was around 99%, with fleet size increasing by 600 units.
- Secured orders for 6,300 new railcars worth $830 million and delivered 5,400 units in the quarter.
- EBITDA was $104 million with a margin of 13%, while EPS of $1.06 missed expectations.
- Cash and equivalents stood at $291.8 million as of May end.
FY24 Outlook for Greenbrier Companies:
- Revised revenue guidance to $3.50 billion-$3.60 billion.
- Expects to deliver 23,500 – 24,000 units, including around 1,400 units in Brazil.
- Projects capital expenditures and gross leasing investments.
- Anticipates proceeds from equipment sales of around $75 million.
- CEO Lorie L. Tekorius highlighted strong EPS performance driven by efficiencies and execution.
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Analyst Views on GBX
Wall Street analysts forecast GBX stock price to fall
3 Analyst Rating
1 Buy
0 Hold
2 Sell
Moderate Sell
Current: 56.070
Low
38.00
Averages
46.33
High
52.00
Current: 56.070
Low
38.00
Averages
46.33
High
52.00
About GBX
The Greenbrier Companies, Inc. is an international supplier of equipment and services to global freight transportation markets. The Company designs, builds and markets freight railcars in North America, Europe and Brazil. It is a provider of freight railcar wheel services, parts, maintenance and retrofitting services in North America through its maintenance services business unit. It owns a lease fleet of approximately 15,500 railcars that originate primarily from its manufacturing operations. The Company offers railcar management, regulatory compliance services and leasing services to railroads and other railcar owners in North America. Its products include freight railcars, tank cars, intermodal railcars, automotive and sustainable conversions. Its North American management services business offers a range of software and services that include railcar maintenance management, railcar accounting services, total fleet management, fleet logistics, administration and railcar re-marketing.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Strong Market Demand: The robust demand from investors for this ABS issuance reflects ongoing market confidence in Greenbrier's railcar portfolios, with stable utilization and predictable cash flows providing a solid foundation for future growth.
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- Strategic Importance: CFO Michael Donfris noted that Williams' expertise will add significant value to the company's investor relations efforts, supporting the ongoing growth strategy and strengthening relationships with investors.
- Educational Background: Williams holds a Bachelor of Science degree in Finance from the University of Utah, and his educational background combined with extensive industry experience will provide robust support for Greenbrier's investor relations management.
See More
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- New Appointment: Greenbrier has appointed Travis Williams as the Head of Investor Relations, reporting directly to CFO Michael Donfris, aiming to enhance engagement and communication with investors.
- Extensive Experience: With over 20 years in investor relations, capital markets, and equity analysis, Williams previously served as Senior Director of Investor Relations at Enerpac Tool Group, demonstrating a strong ability to enhance shareholder engagement and drive long-term value creation.
- Strategic Importance: Company executives noted that Williams' expertise will add significant value to Greenbrier's investor relations efforts, supporting the company's ongoing growth strategy and strengthening relationships with investors.
- Educational Background: Williams holds a Bachelor of Science degree in Finance from the University of Utah, and his educational and professional background will bolster the company's competitiveness in the global freight market.
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- Sales Surge: The company's quarterly sales reached $706.1 million, significantly exceeding the anticipated $626.297 million, demonstrating robust product demand that could enhance market share and competitiveness.
- Stock Fluctuation: Despite the positive earnings report, Greenbrier's stock fell 0.8% to $52.90 in after-hours trading, reflecting market concerns about the broader economic environment.
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- Robust Liquidity: Greenbrier maintains over $895 million in liquidity, including more than $300 million in cash and $535 million in available borrowing capacity, reflecting its solid capital structure and disciplined execution.
- Fiscal 2026 Guidance: The company reiterated its fiscal 2026 guidance, projecting revenue between $2.7 billion and $3.2 billion, showcasing confidence in navigating current market conditions and commitment to long-term value creation.
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