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Greenbrier Companies Beats Expectations But Takes A Step Back Anyway

By Seth Jayson – Updated Apr 10, 2017 at 1:55PM

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Just the facts, Fool.

Greenbrier Companies (NYSE: GBX) reported earnings on April 4. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Feb. 28 (Q2), Greenbrier Companies missed estimates on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped. GAAP earnings per share dropped significantly.

Gross margins grew, operating margins dropped, net margins dropped.

Revenue details
Greenbrier Companies reported revenue of $423.2 million. The 11 analysts polled by S&P Capital IQ predicted revenue of $448.1 million on the same basis. GAAP reported sales were 7.6% lower than the prior-year quarter's $458.2 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.45. The 13 earnings estimates compiled by S&P Capital IQ anticipated $0.37 per share. GAAP EPS of $0.45 for Q2 were 21% lower than the prior-year quarter's $0.57 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 11.4%, 20 basis points better than the prior-year quarter. Operating margin was 5.5%, 30 basis points worse than the prior-year quarter. Net margin was 3.3%, 60 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $504.6 million. On the bottom line, the average EPS estimate is $0.57.

Next year's average estimate for revenue is $1.89 billion. The average EPS estimate is $1.94.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 199 members out of 222 rating the stock outperform, and 23 members rating it underperform. Among 66 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 58 give Greenbrier Companies a green thumbs-up, and eight 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 $19.63.

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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. The Motley Fool has no position in any of the stocks mentioned. 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.

Stocks Mentioned

The Greenbrier Companies Stock Quote
The Greenbrier Companies
$36.19 (-0.33%) $0.12

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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