The 10-second takeaway
For the quarter ended Feb. 29 (Q2), Greenbrier Companies beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share expanded.
Margins expanded across the board.
Greenbrier Companies chalked up revenue of $458.2 million. The nine analysts polled by S&P Capital IQ foresaw a top line of $439.9 million on the same basis. GAAP reported sales were 63% higher than the prior-year quarter's $281.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.57. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.47 per share. GAAP EPS were $0.57 for Q2 compared to -$0.02 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 11.2%, 260 basis points better than the prior-year quarter. Operating margin was 5.8%, 350 basis points better than the prior-year quarter. Net margin was 3.9%, 410 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $512 million. On the bottom line, the average EPS estimate is $0.61.
Next year's average estimate for revenue is $1.85 billion. The average EPS estimate is $2.21.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 192 members rating the stock outperform and 24 members rating it underperform. Among 59 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 50 give Greenbrier Companies a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Greenbrier Companies is outperform, with an average price target of $32.70.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.