Greenbrier Companies Crushes Earnings Estimates
Greenbrier Companies (NYS: GBX) reported earnings yesterday. Here are the numbers you need to know.
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.
Over the decades, small-cap stocks like Greenbrier Companies have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Greenbrier Companies to My Watchlist.
At the time this article 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.