Greenbrier Companies (GBX) jumped 8.5% in early
trade after beating quarterly expectations and reaffirming guidance for the
The company, which builds, leases, repairs, supplies, and manages railcars, reported above-consensus first quarter earnings of $0.54 per share on an 8.0% year/year increase in revenue to $604.5 mln, which was also ahead of estimates.
Greenbrier delivered 4,500 new railcars during the first quarter and received orders for 5,400 railcars, valued at $560 mln. This was the third consecutive quarter in which the company saw a book-to-bill ratio above 1.0x.
The company's new railcar backlog stood at 27,500 at the end of the quarter with an estimated value of $2.7 bln.
Gross margin weakened to 12.0% from 16.0% one year ago. The company blamed its product mix for the contraction.
Looking ahead, the company reaffirmed expectations for fiscal year earnings between $4.20 per share and $4.40 per share while revenue is expected to exceed $3.0 bln. Greenbrier noted that orders in its backlog should account for 90% of production during the fiscal year. Total deliveries are expected between 24,000 and 26,000 units.
In addition to reporting quarterly results, the company announced that its repurchase program has been extended by two years and that the company’s buyback authorization has been increased to $100 mln.
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