LONDON, UK / ACCESSWIRE / July 12, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on The Greenbrier Cos., Inc. (NYSE: GBX), which can be viewed by registering at http://protraderdaily.com/optin/'symbol=GBX, following the Company's reporting of its third quarter fiscal 2017 earnings results on June 29, 2017. The maker of railroad freight car equipment recorded the strongest level of orders achieved in traditional markets in the past two years. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Earnings Reviewed
For its third fiscal quarter ended May 31, 2017, Greenbrier Cos. reported revenue of $439.116 million compared to revenue of $612.87 million in Q3 FY16. The Company's revenue numbers missed analysts' estimates of $523.3 million.
Greenbrier Cos.' aggregate gross margins during Q3 FY17 were 20.4%, down 60 basis points compared to Q2 FY17 gross margin of 21.0% primarily due to lower deliveries. The Company's general and administrative (G&A) expense was $42.8 million, up 8.4% compared to $39.5 million in the previous quarter, driven by the timing of long-term incentive compensation expense. As a percentage of revenue, G&A was 9.7%, reflecting the dollar increase on a lower revenue base. Greenbrier Cos.' adjusted EBITDA for the reported quarter was $63.8 million, or 14.5% of revenue.
Net earnings attributable to Greenbrier Cos. for Q3 FY17 totaled $32.8 million, or $1.03 per diluted share, compared to $35.35 million, or $1.12 per diluted share, in Q3 FY16. The results surpassed Wall Street's expectations for earnings of $0.81 per share.
Operating Details
During Q3 FY17, Greenbrier Cos. finalized three major strategic transactions. The Company formed Greenbrier-Astra Rail Alliance, executed railcar services and supply agreement with Mitsubishi UFJ Lease & Finance (MUL), while also increasing its stake in Greenbrier-Maxion to 60% and Amsted-Maxion Cruzeiro to 24.5%.
During Q3 FY17, Greenbrier Cos. received diversified orders for nearly 11,000 railcars, valued at $1.01 billion, including 6,000 MUL units. The Company's order activity excludes approximately 500 units from Greenbrier-Maxion and Greenbrier-Astra Rail; including these, the Company's total international order activity would have been 1,000 units. Excluding the 6,000 units from the MUL transaction, Greenbrier Cos.' orders in traditional markets totaled 5,000 units; the strongest level achieved in the past two years.
Greenbrier Cos.' new railcar backlog as of May 31, 2017, was 31,000 units with an estimated value of $3.10 billion compared to 22,600 units with an estimated value of $2.44 billion as of February 28, 2017. The Company's new railcar deliveries totaled 2,600 units for the reported quarter compared to 3,900 units for the quarter ended February 28, 2017. The decline in deliveries was primarily due to the timing of railcar syndications as well as lower production rates for certain car types.
Cash Matters
Greenbrier ended Q3 FY17 with $885 million of liquidity from cash balances and available borrowings under its revolving credit facilities. As of May 31, 2017, the Company's cash balance was $465.41 million, and net debt was approximately $108 million.
The Company's Board of Directors declared a quarterly dividend of $0.22 per share payable on August 08, 2017, to shareholders of record as of July 18, 2017.
Outlook
For FY17, Greenbrier Cos. is forecasting new railcar deliveries to be approximately 15,000 - 16,000 units. The Company is estimating revenue in the range of approximately $2.1 billion- $2.3 billion and diluted EPS in the range of $3.45 to $3.65, excluding $0.17 per share of new convertible note interest expense for FY17.
Stock Performance
At the closing bell, on Tuesday, July 11, 2017, Greenbrier's stock slipped 1.39%, ending the trading session at $42.65. A total volume of 555.64 thousand shares have exchanged hands, which was higher than the 3-month average volume of 470.57 thousand shares. The Company's stock price soared 39.38% in the previous twelve months. Moreover, the stock gained 2.65% since the start of the year. The stock is trading at a PE ratio of 10.82 and has a dividend yield of 2.06%. The stock currently has a market cap of $1.26 billion.
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