Greenbrier Posts Wider-Than-Expected 1Q Loss; Top Analyst Says Buy

Greenbrier Cos. reported lower-than-expected 1Q outcomes. In the meantime, the railroad automotive and gear producer prolonged its share repurchase plan by $100 million by January 2023.

Greenbrier (GBX) posted an adjusted lack of $0.30 per share, in comparison with the year-ago revenue of $0.23. Analysts had forecasted a lack of $0.07 per share. The corporate’s 1Q income of about $403 million declined 47.6% year-over-year and missed the Road consensus of 367.73 million.

Throughout the quarter, Greenbrier acquired new orders for two,900 railcars, valued at about $260 million. The corporate’s diversified new railcar backlog stood at 23,900 models, reflecting an estimated worth of $2.35 billion as of November 30, 2020.

Greenbrier additionally introduced a quarterly dividend of $0.27 a share to be paid on Feb. 16 to shareholders of document as on Jan. 26. Its annual dividend of $1.08 per share displays a dividend yield of two.96%.

Greenbrier’s CEO William A. Furman stated that the corporate is specializing in producing working money flows by environment friendly manufacturing and can also be engaged on decreasing its debt. The corporate lowered its debt ranges by $80 million in 1Q. (See GBX stock analysis on TipRanks)

Following 1Q outcomes, Cowen & Co. analyst Matt Elkott maintained a Purchase ranking and a worth goal of $41 (12.5% upside potential). In a observe to traders, Elkott stated, “Deliveries and gross margin fell in need of our expectations, whereas orders have been 32% above our estimate.” He additional added, “The outcomes affirm our near-term warning, however we’d view right now’s probably weak point as a novel shopping for alternative.”

General, consensus amongst analysts is a Average Purchase with 2 analysts recommending a Purchase ranking, whereas 1 analyst suggesting a Maintain. The common price target of $36 implies draw back potential of round 1.3% over the following 12 months. Shares have superior 19.9% over the previous yr.


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