Greenbrier Companies Reports Q1 Earnings, Stock Drops Despite Strong Results
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 08 2025
0mins
Should l Buy GBX?
Source: SeekingAlpha
Greenbrier Companies Inc's stock fell by 10.91% after crossing below the 5-day SMA, reflecting investor reactions to the broader market context.
The decline comes despite the company reporting a Q1 earnings per share of $1.14, surpassing market expectations of $0.87, and quarterly sales of $706.1 million, significantly exceeding the anticipated $626.297 million. This strong performance indicates robust product demand, yet the stock still experienced a drop, suggesting sector rotation amid broader market strength, with the Nasdaq-100 up 0.95% and the S&P 500 up 0.65%.
This price movement may reflect investor caution despite positive earnings, highlighting the potential for a shift in focus within the market, particularly as Greenbrier continues to solidify its position in the freight transportation sector.
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Analyst Views on GBX
Wall Street analysts forecast GBX stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for GBX is 46.33 USD with a low forecast of 38.00 USD and a high forecast of 52.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
1 Buy
0 Hold
2 Sell
Moderate Sell
Current: 53.800
Low
38.00
Averages
46.33
High
52.00
Current: 53.800
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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- Significant Financing: Greenbrier successfully issued $300 million in asset-backed securities (ABS) through its wholly-owned subsidiary GBX Leasing 2022-1 LLC, providing long-term financing for its leasing business at a blended interest rate of 5.2%, showcasing the company's strong appeal in capital markets.
- Rating and Term Advantages: The securities received 'AA' and 'A' ratings from S&P Global Ratings, with weighted average lives of approximately 6.7 and 7.0 years, respectively, indicating investor confidence in Greenbrier's railcar asset portfolio and enhancing the company's financial stability.
- 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.
- Strategic Support and Investment: CEO Lorie L. Tekorius noted that the favorable terms of this transaction not only demonstrate the durability of its manufacturing platform but also support the company's long-term strategy, facilitating continued investment and expansion in the railcar sector.
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- Extensive Experience: Williams brings over 20 years of experience in investor relations, capital markets, and equity analysis, having 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: 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.
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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.
See More
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- Earnings Beat: Greenbrier Companies Inc reported a Q1 earnings per share of $1.14, surpassing market expectations of $0.87, indicating strong performance that may boost investor confidence.
- 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.
- Industry Impact: Greenbrier's strong financial results may positively influence the transportation and logistics sector, attracting more investor attention to related stocks and potentially driving overall industry recovery.
See More
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- Strong Revenue Performance: Greenbrier reported $706 million in revenue for Q1 with a gross margin of 15%, demonstrating the resilience of its integrated manufacturing and leasing model, which is expected to enhance future market competitiveness.
- New Order Growth: The company secured approximately 3,700 new railcar orders valued at around $550 million, indicating strong demand even in a challenging market, thereby strengthening its market position.
- 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.
See More
Greenbrier Completes $300 Million ABS Offering for Long-Term Financing
- Significant Financing: Greenbrier successfully issued $300 million in asset-backed securities (ABS) through its wholly-owned subsidiary GBX Leasing 2022-1 LLC, providing long-term financing for its leasing business at a blended interest rate of 5.2%, showcasing the company's strong appeal in capital markets.
- Rating and Term Advantages: The securities received 'AA' and 'A' ratings from S&P Global Ratings, with weighted average lives of approximately 6.7 and 7.0 years, respectively, indicating investor confidence in Greenbrier's railcar asset portfolio and enhancing the company's financial stability.
- 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.
- Strategic Support and Investment: CEO Lorie L. Tekorius noted that the favorable terms of this transaction not only demonstrate the durability of its manufacturing platform but also support the company's long-term strategy, facilitating continued investment and expansion in the railcar sector.
See More
Greenbrier (GBX) Q1 2026 Earnings Call Transcript
See More
Greenbrier Appoints Travis Williams as Head of Investor Relations
- New Appointment: Greenbrier has appointed Travis Williams as the Head of Investor Relations, reporting directly to CFO Michael Donfris, aiming to enhance interactions and communication with investors.
- Extensive Experience: Williams brings over 20 years of experience in investor relations, capital markets, and equity analysis, having 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: 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
Greenbrier Appoints Travis Williams as Head of Investor Relations to Enhance Shareholder Engagement
- 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.
See More
Greenbrier Companies Inc Beats Q1 Earnings Estimates with $1.14 EPS and $706.1M Sales
- Earnings Beat: Greenbrier Companies Inc reported a Q1 earnings per share of $1.14, surpassing market expectations of $0.87, indicating strong performance that may boost investor confidence.
- 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.
- Industry Impact: Greenbrier's strong financial results may positively influence the transportation and logistics sector, attracting more investor attention to related stocks and potentially driving overall industry recovery.
See More
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- Strong Revenue Performance: Greenbrier reported $706 million in revenue for Q1 with a gross margin of 15%, demonstrating the resilience of its integrated manufacturing and leasing model, which is expected to enhance future market competitiveness.
- New Order Growth: The company secured approximately 3,700 new railcar orders valued at around $550 million, indicating strong demand even in a challenging market, thereby strengthening its market position.
- 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.
See More
