Greenbrier: 3-Point Strategic Plan Launched 3 Years Ago Is Bearing Fruit
Michael Fitzsimmons • 33 Comments
Michael Fitzsimmons • 33 Comments
The Greenbrier Companies, Inc: A Value Stock With An Unjustified Correlation To Oil
Liam Garrity-Rokous • 41 Comments
Liam Garrity-Rokous • 41 Comments
Wed, Jul. 6, 6:20 AM
- Greenbrier (NYSE:GBX) reports Manufacturing revenue declined 22.7% to $458.49M in FQ3,
- Wheels & Parts revenue squeezed 19.5% to $78.42M.
- Gross margin rate decreased 20 bps to 20.7%.
- SG&A expense rate grew 70 bps to 7.1%.
- Operating margin rate dropped 90 bps to 13.7%.
- New rail car deliveries fell 4.4% Q/Q to 4,300 units.
- New railcar manufacturing backlog was 31.2K units valued at $3.6B at quarter's end, vs. 34.1K units valued at $4B as of Feb. 29.
- FY2016 Guidance: Deliveries: ~20,000 to 21,000 units; Revenues: ~$2.8B; Diluted EPS: $5.70 to $5.90.
Tue, Jun. 21, 11:14 AM
- Canadian Pacific (CP -2.7%) warns that Q2 revenue will tail off 12% Y/Y in Q2 and EPS will come in 18% lower.
- The revised guidance from the railroad company is for Q2 revenue of C$1.45B vs. C$1.56B and Q2 EPS of C$2.00 vs. C$2.48 consensus
- Greenbrier (GBX -1.6%), Genesee & Wyoming (GWR -1.6%), CSX (CSX -1.1%), and Canadian National Railway (CNI -0.9%) are all lower after the soft view from a sector leader.
Tue, Apr. 5, 3:48 PM
- Greenbrier (GBX +4.6%) shares maintain strong gains despite posting lower than expected FQ2 earnings and revenues, as the company sees continued U.S. demand as the economy continues to have "strong legs."
- GBX says it received 3K new railcar orders valued at $310M during the quarter but down 70% Y/Y, and lowered its delivery estimate for FY 2016 to 20K-22K units, trimming 500 off the top end.
- But on its earnings conference call, GBX reiterated its belief in its ability to achieve its guidance amid the narrowing of its deliveries guidance, and said it is "a little bit more optimistic" on the railcar industry than most industry forecasters.
- GBX also announced a 50/50 joint venture with Sumitomo that it says will establish the "pre-eminent" axle machining location on the U.S. west coast that supports growing intermodal rail activity.
- Now read Greenbrier: A value stock with an unjustified correlation to oil
Thu, Mar. 24, 5:38 PM
Thu, Mar. 17, 2:48 PM
- Greenbrier (GBX +3.5%) is higher despite BB&T Capital's downgrade to Hold from Buy, as the firm believes the railcar delivery cycle has begun a multi-year downturn.
- Even as BB&T forecasts an elevated EPS for FY 2016, it sees 2017 and 2018 as more challenging.
- But GBX's more diversified mix, tank car recertification capabilities and the modest possibility that industry-wide railcar deliveries could see a more gradual downturn in 2017-18 if commodities rally keep BB&T from an even lower rating for the stock.
Thu, Feb. 18, 5:18 PM
- Trinity Industries (NYSE:TRN) -14.8% AH, on top of a 4% drop in today's regular trade, after Q4 earnings beat estimates but amid guidance that falls well below Wall Street estimates.
- TRN estimates FY 2016 EPS of $2.00-$2.40, vs. the $3.65 analyst consensus estimate, assuming that "the current weak market conditions will continue throughout the year."
- TRN says it is now expecting fewer new orders for railcars and deteriorating demand in its barge business, and will focus on containing costs.
- Greenbrier (NYSE:GBX) -8.2% AH following TRN's results.
Thu, Feb. 4, 2:38 PM
- Stocks related to the railroad industry are largely higher on the day as the sector seems to be marching to its own tune apart from oil prices and macroeconomic news.
- Significant gainers include Greenbrier (GBX +8%), Genesee & Wyoming (GWR +7%), Canadian Pacific (CP +6.1%), Norfolk Southern (NSC +3.6%), and Trinity Industries (TRN +5.4%).
- On a related front, Canadian Pacific put out a white paper on its merger path with Norfolk Southern. Analysts have been bickering about what M&A premium to apply to many of the rails.
Wed, Feb. 3, 10:36 AM
- Greenbrier (GBX -1.6%) says CFO Mark Rittenbaum will leave the position for the newly created position of Executive VP for Commercial, Leasing and Finance, shifting his focus to commercial activities, particularly new railcar sales, leasing, and integration and enhancement of customer service design.
- The new CEO is Lorie Tekorius, a 20-year veteran of the company who has been treasurer since 2012.
- GBX says the changes are "an opportunity to put our seasoned executive expertise to even greater use in a fluctuating environment."
Fri, Jan. 8, 3:57 PM
- Greenbrier (GBX -2.6%) shares sink to new 52-week lows, but Cowen analyst Matt Elkott says "overblown concerns” about “a small percentage” of the company’s tank cars and succession plans reversed an initial rise after Q1 earnings beat estimates, resulting in a “unique buying opportunity."
- Elkott blames the stock's reversal and decline during yesterday's earnings conference call partly on crude tank cars, which are “only 1% of GBX’s diversified 36K backlog” as well as the mention of ~500 off-lease cars built in anticipation of orders.
- CEO Bill Furman also was clear that he is not stepping down any time in the near future, though succession plans are in the works; the CEO recently sold roughly half his GBX stock, but the move should not have come as a surprise since he mentioned his intentions during October's earnings call, the analyst says.
Thu, Jan. 7, 6:28 AM
- Greenbrier (NYSE:GBX) reports Manufacturing revenue rose 83.9% to $698.66M in FQ1,
- Gross margin rate increased 520 bps to 23% led by manufacturing and lease syndication activities.
- SG&A expense rate improved 220 bps to 4.6%.
- New rail car deliveries grew 11.3% Q/Q to 6,900 units.
- New railcar manufacturing backlog was 36K units valued at $4.14B at quarter's end, vs. 41.3K units valued at $4.71B as of Aug. 31.
- FY2016 Guidance: Deliveries: ~20,000 to 22,500 units; Revenues: exceed $2.8B; Diluted EPS: $5.65 to $6.15.
Mon, Jan. 4, 2:29 PM
- Stephens downgrades Greenbrier (GBX -2%) to an Equal Weight rating from Overweight.
- The investment firm sees soft railcar orders again this year for the company.
- The price target on GBX is chopped down to $37 from $50 by Stephens due to the weak outlook for orders. Shares traded as high as $66 last April.
Dec. 22, 2015, 5:41 PM
Dec. 15, 2015, 3:55 PM
- Greenbrier's (GBX +5.5%) battered shares enjoy a rally following this morning's news of a big increase in new orders,
- GBX says it has taken orders for 1,800 new railcar units, valued at $170M, since the beginning of its fiscal year on Sept. 1, with 1,300 of the orders taking place in December.
- The orders cover a range of diverse railcar types, including automobile carrying railcars, boxcars, large cube covered hopper cars, and non-energy tank cars for the North American and European markets; Cowen analysts say the unit mix is encouraging, “as tank cars and box cars tend to be higher margin equipment, and the large cube-covered hopper market is an area of an anticipated demand increase in which [GBX] is trying to establish presence.”
- GBX also reaffirms FY 2016 guidance, including deliveries of 20K-22.5K units, revenue to exceed $2.8B vs. $2.78B analyst consensus estimate, and EPS of $5.65-$6.15 vs $6.00 consensus.
Jun. 24, 2015, 11:16 AM
- Select railroad and trucking stocks trade weak after Q1 GDP figures are revised in-line with expectations. A read yesterday on durable goods was weak.
- Stocks from the transportation sector drifting lower include Knight Transportation (KNX -4.5%), Swift Transportation (SWFT -5.5%), ArcBest (ARCB -3.9%), YRC Worldwide (YRCW -2.2%), Greenbrier (GBX -1.6%), Heartland Express (HTLD -2.6%), Kansas City Southern (KSU -2.2%), Celadon Group (CGI -2%), JB Hunt Transport (JBHT -2.1%), Trinity Industries (TRN -1.6%).
- FedEx (FDX -0.9%) and UPS (UPS -0.8%) are also trailing broad market averages.
Jun. 16, 2015, 3:56 PM
- Greenbrier (GBX -10.4%) tumbles more than 10% after Stifel downgrades shares to Hold from Buy, citing an expected decline in industry production levels after 2015.
- Stifel believes the prospect for declining industry production levels after 2015, leading to the possibility of multiple compression for the industry as a whole, could prevent GBX shares from continuing to outperform the market during the next 12 months after rising 11% YTD vs. +1% for the S&P 500.
- The firm foresees industry production levels peaking this year at 84K, then declining to 74K in 2016 and 64K in 2017, driven by an unfavorable outlook for deliveries of tank cars and covered hoppers due to the fall in oil prices.
Apr. 7, 2015, 9:13 AM
Greenbrier Cos., Inc. designs, manufactures and markets railroad freight car equipment in North America and Europe. It also manufactures and markets ocean-going marine barges in North America. It provides wheel services, railcar refurbishment and parts, leasing and other services to the railroad... More
Country: United States