Post Earnings Coverage as Greenbrier’s Q1 Revenues Beat Forecasts

Upcoming AWS Coverage on Union Pacific Post-Earnings Results

LONDON, UK / ACCESSWIRE / January 11, 2017 / Active Wall St. announces its post-earnings coverage on The Greenbrier Cos., Inc. (NYSE: GBX). The Company released its financial results for the first quarter fiscal 2017 (Q1 FY17) on January 06, 2017. The Lake Oswego, Oregon-based Company’s revenue declined 31.2% y-o-y, but still managed to beat market consensus estimates. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Greenbrier Cos.’ competitors within the Railroads space, Union Pacific Corp. (NYSE: UNP), announced on December 14, 2016, that it will present its fourth quarter 2016 earnings release live over the Internet and via teleconference on Thursday, January 19, 2017, at 8:45 a.m. ET. AWS will be initiating a research report on Union Pacific in the coming days.

Today, AWS is promoting its earnings coverage on GBX; touching on UNP. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=GBX

http://www.activewallst.com/registration-3/?symbol=UNP

Earnings Reviewed

Greenbrier’s revenue fell during Q1 FY17 to $552.31 million from $802.39 million recorded at the end of Q1 FY16. However, revenue numbers for Q1 FY17 outperformed market consensus estimates of $489.39 million.

For Q1 FY17, the maker of railroad freight car equipment posted gross margin of $112.75 million, or 20.4% of revenue, compared to $184.77 million, or 23.0% of revenue in the year ago same period. The Company’s selling and administrative expenses increased to $41.21 million in Q1 FY17 from $36.55 million in Q1 FY16. The Company reported earnings from operations of $72.66 million versus $148.49 million in Q1 FY16. Additionally, adjusted EBITDA for the quarter came in at $85.67 million compared to $104.38 million in Q1 FY16.

During the reported quarter, the Company’s net earnings attributes to Greenbrier came in at $24.96 million, or $0.79 per diluted share, compared to $69.43 million, or $2.15 per diluted share, in prior year’s comparable quarter. Wall Street had expected the Company to post adjusted diluted earnings per share of $0.84 per share in the reported quarter.

Operational Metrics

In Q1 FY16, the Company delivered 4,000 railcars, including syndication of 500 units through the leasing platform, down from 6,900 railcars in the year ago comparable quarter. The total orders during the quarter were 2,400 new railcars valued over $230 million, or an average price of approximately $98,000 per railcar.

As of November 30, 2016, new railcar backlog was 25,800 units with an estimated value of $2.97 billion at an average unit sale price of $115,000. Furthermore, Marine backlog as of November 30, 2016, was $103 million compared to $36 million as of November 30, 2015.

Segment Performance

During Q1 FY17, Greenbrier’s manufacturing segment’s revenue fell to $454.03 million from $698.66 million reported in the last year’s corresponding quarter. The segment reported gross margin of $97.48 million, or 21.5% of segment revenues, in Q1 FY17, compared to $165.63 million, or 23.7% of segment revenues, in the previous year’s comparable quarter. Furthermore, the segment’s earnings from operations were down to $83.34 million from $153.70 million in Q1 FY16.

Wheels & Parts segment revenue declined 11.6% to $69.64 million in Q1 FY17 from $78.73 million in the prior year’s same quarter. The segment’s gross margin fell to $4.66 million, or 6.7% of segment revenues, in Q1 FY17 from $5.73 million, or 7.3% of segment revenues, in last year’s corresponding quarter. Moreover, the segment’s Q1 FY17 earnings from operations came in at $2.89 million, or 4.2% of segment revenues, versus $3.40 million, or 4.3% of segment revenues, in Q1 FY16.

The Company’s Leasing & Services segment’s revenue for Q1 FY17 was $28.65 million in Q1 FY17 compared to $25.00 million reported in the year-ago same quarter. The segment’s gross margin came in at $10.62 million, or 37.1% of segment revenues in Q1 FY17 compared to $13.41 million, or 53.6% of segment revenues, in Q1 FY16. Furthermore, the segment’s earnings from operations came in at $7.39 million, or 25.8% of segment revenues, in Q1 FY17 versus $9.96 million, 39.8% of segment revenues, in the previous year’s same quarter.

Cash Matters and Balance Sheet

Greenbrier generated $29.01 million as cash from operating activities in the reported period compared to net cash used in operating activities of $63.49 million in Q1 FY16. The Company ended the quarter with cash and cash equivalents balance of $233.79 million versus $222.68 million as on August 31, 2016.

Dividend

In the earnings press release, the Company’s Board of Directors announced quarterly dividend of $0.21 per share, which is payable on February 16, 2017, to shareholders as of January 26, 2017.

Outlook

In its full year FY17outlook, Greenbrier’s management expects deliveries will be in the range of 14,000 to 16,000 units. The Company has provided revenue guidance range of $2.0 billion to $2.4 billion. Additionally, the Company forecasts diluted EPS guidance range of $3.25 per share to $3.75 per share.

Stock Performance

On Tuesday, the stock closed the trading session at $48.65, climbing 2.64% from its previous closing price of $47.40. A total volume of 823.76 thousand shares have exchanged hands, which was higher than the 3-month average volume of 560.49 thousand shares. Greenbrier Cos.’ stock price advanced 32.37% in the last three months, 56.03% in the past six months, and 108.02% in the previous twelve months. Furthermore, shares of the company have rallied 108.02% in the past one year. The Company’s shares are trading at a PE ratio of 8.49 and have a dividend yield of 1.73%.

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