A downtrend has been apparent in Greenbrier Companies (GBX) lately with too much selling pressure. The stock has declined 14.8% over the past four weeks. However, given the fact that it is now in oversold territory and Wall Street analysts are majorly in agreement about the company's ability to report better earnings than they predicted earlier, the stock could be due for a turnaround.How to Determine if a Stock is OversoldWe use Relative Strength Index (RSI), one of the most commonly used technical indicat ...

The Greenbrier Companies NYSE: GBX stock is returning to the buy zone. The business is boring, and the Q3 release is uninspiring, but neither are reasons for income investors to shed the stock. The results certainly aren’t reasons for its price to drop more than 10%, which is why the stock price correction in GBX is a good buying opportunity to load up on more shares.Greenbrier Companies TodayGBXGreenbrier Companies$44.08 -4.48 (-9.22%) 52-Week Range$32.00▼$58.00Dividend Yield2.72%P/E Ratio12.97Price Target ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock without par value GBX New York Stock Exchange Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the quarterly period ended May 31, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for th ...

Financial Data and Key Metrics Changes - The company generated over $820 million in revenue during Q3 2024, with a consolidated gross margin of 15.1%, marking the third consecutive quarter of mid-teen margins [9][21] - Net earnings attributable to Greenbrier were $34 million, resulting in diluted EPS of $1.06 per share, the highest level in over 4.5 years [22] - EBITDA reached $104 million, representing 13% of revenue, indicating strong operational performance [22] Business Line Data and Key Metrics Changes - The manufacturing gross margin for Q3 was 10.9%, showing a modest increase from Q2, with ongoing efficiency gains being sustained [15] - The leasing and management services segment added 600 units to the lease fleet, maintaining a stable fleet utilization rate of 99% [15] - The company expects to invest approximately $265 million in the lease fleet this year to support its goal of doubling recurring revenue [15] Market Data and Key Metrics Changes - Greenbrier secured new railcar orders of 6,300 units worth $830 million in Q3, with a strong backlog of 29,400 units valued at $3.7 billion [13] - Approximately 25% of orders originated from international markets, particularly Europe and Brazil, indicating healthy international demand [13] - The North American railcar market remains stable, with demand for various car types, including tank cars and covered hopper cars, continuing to be strong [40] Company Strategy and Development Direction - The company is progressing with its multiyear "Better Together" strategy, focusing on operational efficiencies and lease fleet expansion [8] - Greenbrier aims to optimize operations continuously and is on track to achieve its strategic goals ahead of schedule [9] - The company is committed to reducing its environmental footprint and has been recognized as one of America's climate leaders for 2024 [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in stable railcar demand across all geographies, with a less volatile market compared to previous decades [12] - The company anticipates a significant increase in Q4 activity, with narrowed delivery guidance of 23,500 to 24,000 units [25] - Management remains optimistic about the future, emphasizing the strength of their backlog and operational improvements [27] Other Important Information - The company returned over $9 million to shareholders through dividends, marking its 41st consecutive quarterly dividend [23] - Greenbrier has no significant near-term debt maturities, with approximately 85% of its debt fixed at a weighted average rate of about 4% [24] - The company is focused on reducing recourse debt, which has decreased by $11 million compared to the previous quarter [24] Q&A Session Summary Question: Inquiry about manufacturing order rates compared to industry data - Management noted that strong market share is due to a diverse production mix, allowing them to meet customer delivery needs effectively [31][32] Question: Follow-up on leasing segment margins and external sourcing - Management indicated that external sourcing of railcars may become more common as they grow the lease fleet, but it is difficult to predict quantitatively [34][36] Question: Discussion on North American order flow and demand evolution - Management confirmed strong demand for various railcar types and noted that the order cadence remains consistent [40][41] Question: Inquiry about mid and long-term cost initiatives in manufacturing - Management outlined initiatives expected to generate significant cost savings, with a focus on in-sourcing and capacity rationalization [42][45] Question: Clarification on production capacity and outlook for next year - Management expressed confidence in their production capacity and indicated that they expect stable production levels into 2025 [55] Question: Discussion on leasing revenue levels and near-term development - Management expects continued growth in recurring revenue from leasing, with a steady build over the last 18 months [57]

Financial Performance - Diluted EPS reached $1.06, the highest level in over 4.5 years, with net earnings of $34 million on revenue of $820 million[2] - EBITDA for the quarter was $104 million, representing 13% of revenue and the highest level in over 4.5 years[2] - Net earnings for the three months ended May 31, 2024, were $40.6 million, compared to $33.6 million for the previous period[30] - Net earnings for the nine months ended May 31, 2024, increased to $107.4 million, compared to $46.2 million for the same period in 2023, representing a 132.3% increase[16] - Basic earnings per common share for the three months ended May 31, 2024, were $1.09, compared to $0.67 for the same period in 2023[14] - The company reported a net cash provided by operating activities of $138.4 million for the nine months ended May 31, 2024, significantly up from $1.2 million in the prior year[16] - The company declared a quarterly dividend of $0.30 per share, marking its 41st consecutive quarterly dividend[2] - Dividends per common share increased to $0.30 for the three months ended May 31, 2024, compared to $0.27 for the same period in 2023[14] Revenue and Orders - Total revenue for the third quarter was $820.2 million, with manufacturing revenue at $685.1 million, maintenance services at $69.9 million, and leasing & management services at $65.2 million[22] - New railcar orders totaled 6,300 units valued at $830 million, contributing to a backlog of 29,400 units worth an estimated $3.7 billion[2] - The ending backlog increased to 29,400 units, up from a beginning backlog of 29,200 units, with orders received totaling 6,300 units during the three months ended May 31, 2024[28] - Total deliveries for the period were 5,400 units, which included 3,700 direct sales and 1,700 leased railcars sold for syndication[28] - Revenue from Leasing & Management Services increased to $65.2 million, driven by increased syndication activity[7] Operational Efficiency - Gross margin improved to 15.1%, up from 14.2% in the previous quarter, driven by better operating performance in Manufacturing and Maintenance Services[5] - Operating cash flow generated was $84 million, reflecting strong operational efficiency[2] - Earnings from operations for the third quarter were $72.3 million, with selling and administrative expenses totaling $59.3 million[22] Leasing and Fleet Growth - The lease fleet grew by 600 units to 15,200 units, with a fleet utilization rate of nearly 99%[1] - Greenbrier's leasing strategy aims to double recurring revenue from leasing and management fees by investing up to $300 million net annually over the next five years[18] - The Greenbrier lease fleet increased to 15,200 units as of May 31, 2024, up from 14,600 units at the end of February 2024[19] - Equipment on operating lease increased to $1,226.9 million as of May 31, 2024, compared to $1,160.5 million at the end of February 2024[19] Financial Position - The total cash and cash equivalents and restricted cash at the end of the period was $291.8 million, down from $341.5 million at the end of the previous year[16] - Total assets as of May 31, 2024, were $4,115.8 million, compared to $4,043.6 million as of February 29, 2024[27] - Total consolidated debt as of May 31, 2024, was $1,762.3 million, up from $1,722.6 million as of February 29, 2024[31] - The company reported a total leasing non-recourse debt of $944.9 million as of May 31, 2024, up from $895.2 million at the end of February 2024[19] Future Outlook - Greenbrier updated its fiscal 2024 guidance, projecting revenue between $3.5 billion and $3.6 billion and deliveries of 23,500 to 24,000 units[4] - Capital expenditures are expected to be approximately $150 million in Manufacturing and $15 million in Maintenance Services[4] - Greenbrier's management remains optimistic about future orders and backlog, although they caution that not all orders are guaranteed[32] Risks and Considerations - The company highlighted potential risks including economic downturns, inflation, and supply chain disruptions that could impact future performance[32] - Greenbrier emphasizes that EBITDA is not a GAAP measure and should not be considered in isolation from other financial metrics[33] - The company defines EBITDA as net earnings before interest, foreign exchange, income tax expense, and depreciation and amortization, providing a clearer view of operational performance[34]

Diluted EPS of $1.06 grows to highest level in over 4.5 yearsNew railcar orders of 6,300 units valued at $830 millionGross margin of 15%LAKE OSWEGO, Ore., July 8, 2024 /PRNewswire/ -- The Greenbrier Companies, Inc. (NYSE: GBX) ("Greenbrier"), a leading international supplier of equipment and services to global freight transportation markets, today reported financial results for its third fiscal quarter ended May 31, 2024.Third Quarter Highlights Grew lease fleet by 600 units to 15,200 units with lease fleet ...

LAKE OSWEGO, Ore., June 21, 2024 /PRNewswire/ -- The Greenbrier Companies, Inc. (NYSE:GBX) invites shareholders and other interested parties to listen to its financial results conference call for the third quarter ended May 31, 2024, live, either over the Internet or via dial in.What: The Greenbrier Companies Q3 2024 Financial Results Conference CallWhen: Monday, July 8, 2024 at 8:00 a.m. PDTListeners can access the webcast at the Greenbrier website at www.gbrx.com.  To register for or access the webcast, c ...

The Zacks  Transportation - Equipment and Leasing industry currently stands to benefit from the solid investor-friendly steps. Notably, consistent shareholder-friendly initiatives in the form of dividend payouts or share buybacks imply solid financial strength of companies in the Equipment and Leasing industry. Such moves boost investors’ confidence and positively impact the bottom line.Notably, the industry has risen 37% compared with the Zacks S&P 500 Composite’s northward movement of 25.6% and the Zacks ...

Pgiam/iStock via Getty Images Investment Summary Now we are halfway through the year, it is imperative to position for sector and factor rotations amid the upcoming slew of second-quarter earnings. Around 1 month ago, I constructed a composite made up of 1) the current S&P 500 Index sector weightings, versus 2) the projected next 12 months' earnings growth of each sector. As you can see in Figure 1, the industrials sector looks to offer the least compelling price/value calculus based on this. The basic ...

Investors looking for stocks in the Transportation - Equipment and Leasing sector might want to consider either Greenbrier Companies (GBX) or Westinghouse Air Brake Technologies (WAB) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks R ...