What happened
Train-car manufacturer Greenbrier Companies (GBX 1.19%) shares jumped as much as 14% in early Wednesday trading, before settling down to enjoy an 11.3% gain by 12:30 p.m. EDT.
So what
Greenbrier reported profits of $1.09 per share in its fiscal second-quarter earnings report, released this morning, on revenues of $566.3 million.
The results were down significantly from the $1.41 per share in profits and $669.1 million in sales that Greenbrier reported a year ago. Nonetheless, they easily topped analyst predictions that the company would earn $0.84 per share on revenues of $521.5 million -- and investors are applauding accordingly.
Wednesday dawns bright for Greenbrier investors. Image source: Getty Images.
Now what
Adding to investors' optimism was management's doubling down on its guidance that was updated last quarter. As of today, Greenbrier remains convinced it will book sales of between $2 billion and $2.4 billion this year, and earn between $3.25 and $3.75 per share on those sales.
On top of all of this good news, Greenbrier announced a new deal with Tokyo-based Mitsubishi UFJ Lease & Finance to supply the latter with 6,000 newly manufactured railcars through 2020. Mitsubishi UFJ has furthermore made Greenbrier its exclusive supplier of new railcars through 2023 and committed to "a combination of lease syndications and used equipment owned and originated by Greenbrier."
Greenbrier says the total value of the deal inked with Mitsubishi exceeds $1 billion.
Long story short: The good news that began at Greenbrier this morning may not be ending anytime soon.
