Greenbrier Companies Increases Sales but Misses Revenue Estimate

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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.


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.


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.


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 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.

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