What happened
Railcar manufacturer Greenbrier Cos(NYSE: GBX) pre-announced its quarterly results and said it received orders for 4,500 new cars during the period. Investors are excited, sending Greenbrier shares up more than 10% for the week, according to data provided by S&P Global Market Intelligence.
So what
Greenbrier isn't expected to release results from its fiscal second quarter ended Feb. 28 until April, but the company this week provided an update that gave investors reasons to cheer. Greenbrier said it expects to earn between $0.95 and $1 per share in that quarter on revenue of $1.1 billion, well ahead of the $0.36 per share in earnings on $782 million in sales that investors had expected.
The outperformance is being fueled by strong demand for Greenbrier's rail cars. The company said it had received orders for 4,500 new cars with an aggregate value of $580 million during the quarter. During the quarter, Greenbrier delivered 7,200 units. Analysts had expected about 5,500.
"Our order activity and financial performance in the second quarter demonstrate Greenbrier's market-leading position in freight railcar sales, leasing, and services," CEO Lorie L. Tekorius said. "This reflects great execution by our commercial and leasing teams, excellence in engineering, agility in manufacturing, and resourcefulness in global sourcing. Fundamentally, Greenbrier is well positioned and moving ahead in our markets."
Now what
Greenbrier attributed the expected results to strong execution. Although management almost certainly deserves a lot of credit, that is also likely an indication that supply chain issues common to many industrial stocks right now are easing.
If so, that would be good news that is likely to extend far beyond the recently completed quarter. Investors will be eager to hear what management has to say at the company's planned April 12 investor day, when multiyear targets are likely to be discussed.
10 stocks we like better than Greenbrier Companies
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Greenbrier Companies wasn't one of them! That's right -- they think these 10 stocks are even better buys.
*Stock Advisor returns as of March 8, 2023
Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
