Greenbrier Companies Increases Sales but Misses Revenue Estimate

Seth Jayson, The Motley Fool
Updated

Greenbrier Companies (NYS: GBX) reported earnings on Jan. 6. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Nov. 30 (Q1), Greenbrier Companies missed slightly on revenues and crushed expectations on earnings per share.

Compared to the prior-year quarter, revenue increased significantly, and earnings per share grew.

Gross margins dropped, operating margins increased, net margins increased.

Revenue details
Greenbrier Companies reported revenue of $398 million. The nine analysts polled by S&P Capital IQ hoped for revenue of $404 million. Sales were 98% higher than the prior-year quarter's $201 million.

anImage
anImage

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $0.48. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.36 per share. GAAP EPS were $0.48 for Q1 versus -$0.11 per share for the prior-year quarter.

anImage
anImage

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 11.7%, 130 basis points worse than the prior-year quarter. Operating margin was 5.8%, 170 basis points better than the prior-year quarter. Net margin was 3.6%, 470 basis points better than the prior-year quarter.

anImage
anImage

Source: S&P Capital IQ. Quarterly periods.

Looking ahead
What does the future hold?

Next quarter's average estimate for revenue is $437 million. On the bottom line, the average EPS estimate is $0.45.

Next year's average estimate for revenue is $1.8 billion. The average EPS estimate is $2.09.

Investor Sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 196 members out of 220 rating the stock outperform, and 24 members rating it underperform. Among 71 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 61 give Greenbrier Companies a green thumbs-up, and 10 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Greenbrier Companies is buy, with an average price target of $30.56.

At the time thisarticle was published 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 ofMotley 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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement