Greenbrier Earnings: An Early Look

The new earnings season is about to begin, but a few companies on off-quarter fiscal years are just now getting around to reporting their quarterly results. Greenbrier (NYSE: GBX  ) is about to release its quarterly earnings report. The key to making smart investment decisions with stocks releasing their quarterly reports is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you'll be less likely to make an uninformed knee-jerk reaction to news that turns out to be exactly the wrong move.

Railroads have enjoyed a renaissance in recent years, as high fuel costs have made trains a more energy-efficient way to transport goods. Greenbrier doesn't run a railroad, but it provides the train-cars and other equipment that railroads need in order to operate. Let's take an early look at what's been happening with Greenbrier over the past quarter and what we're likely to see in its quarterly report on Thursday.

Stats on Greenbrier

Analyst EPS Estimate


Change From Year-Ago EPS


Revenue Estimate

$442.9 million

Change From Year-Ago Revenue


Earnings Beats in Past 4 Quarters


Source: Yahoo! Finance.

Will Greenbrier run off the rails this quarter?
Analysts have had mixed thoughts about Greenbrier's earnings prospects in recent months. They reduced their calls for the quarter that ended in February by $0.03 per share, but they upped their full-year fiscal 2013 estimates by the same amount. The stock, meanwhile, has soared, rising nearly 40% just since the beginning of the year.

The big drama for Greenbrier during the last quarter has come from rival American Railcar's (NASDAQ: ARII  ) buyout bid for the company. With activist investor Carl Icahn involved in both companies, American Railcar's bid of $20 per share back in December sent Greenbrier shares soaring, and now, Greenbrier's stock trades well above that figure. Greenbrier CEO William Furman said that he's open to discussions about consolidation, but so far, no deal has been accepted.

But just last week, Greenbrier gave investors a taste of how much business activity it has seen recently. The company reported that it had gotten orders for 5,400 railcars with a total value of about $575 million. Nearly half of those orders were for tank cars, showing the importance of the energy industry to Greenbrier's sales. Burlington Northern and Canadian National Railway (NYSE: CNI  ) have both taken advantage of transportation bottlenecks to key energy-producing areas to offer rail-based transport, and Greenbrier stands to benefit from the demand.

The big question is whether pipeline development will end oil and gas producers' flirtations with rail. Greenbrier thinks producers will stick with rail regardless, and Phillips 66's (NYSE: PSX  ) deal to bring Bakken crude by rail to a New Jersey refinery is just the latest in extensive activity to move energy products.

In its quarterly report, watch for updates on the company's strategic plans, as well as more on its chances of going forward as an independent business. Even with the buyout bid having pushed share prices higher, Greenbrier's valuation looks attractive here as long as it can continue to perform on a fundamental level.

The best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report "3 Stocks That Will Help You Retire Rich" names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.

Click here to add Greenbrier to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2341488, ~/Articles/ArticleHandler.aspx, 9/26/2016 1:49:00 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 2 days ago Sponsored by:
DOW 18,261.45 -131.01 -0.71%
S&P 500 2,164.69 -12.49 -0.57%
NASD 5,305.75 -33.78 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/23/2016 4:02 PM
GBX $34.58 Down -0.43 -1.23%
The Greenbrier Com… CAPS Rating: *****
ARII $38.97 Down -0.90 -2.26%
American Railcar I… CAPS Rating: ****
CNI $64.11 Down -0.82 -1.26%
Canadian National… CAPS Rating: *****