Why Greenbrier Companies Inc. Stock Jumped Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of railcar maker, Greenbrier Companies Inc. (NYSE: GBX  ) jumped 11% today after announcing earnings.

So what: Fiscal-third-quarter revenue was up 37% to $593.3 million and net income was $33.6 million, or $1.03 per share, easily topping Wall Street's $0.74 estimate. But the bigger news may have been that of management increasing adjusted earnings outlook from a range of $2.45-$2.70 up to $2.98-$3.08.  

Now what: Order flow continues to be strong and Greenbrier ended the quarter with 26,400 railcars in backlog valued at $2.75 billion. After two straight disappointing quarters, operations appear to be back on track, driven by tanker car demand. I'm not crazy about shares at over 20 times projected earnings, but the company does have good cash flow and is buying back shares, so if shares dip to a better value, I'd be more interested.

Top dividend stocks for the next decade
The smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.

Read/Post Comments (0) | Recommend This Article (3)

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.

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: 3016097, ~/Articles/ArticleHandler.aspx, 8/29/2015 2:16:03 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...

Travis Hoium

Travis Hoium has been writing for since July 2010 and covers the solar industry, renewable energy, and gaming stocks among other things.

Today's Market

updated 5 hours ago Sponsored by:
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 1.21 0.06%
NASD 4,828.33 15.62 0.32%

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

8/28/2015 4:01 PM
GBX $40.98 Down -0.57 -1.37%
The Greenbrier Com… CAPS Rating: ****