Greenbrier Companies (NYSE:GBX) Reaches New 1-Year Low Following Weak Earnings

Key Points

• Greenbrier shares hit a new 52-week low after quarterly EPS of $0.39 missed the $0.80 consensus estimate, while revenue fell 22.2% year over year to $591 million.
• Despite the weak results, management projected fiscal 2027 revenue of $2.8 billion to $3.2 billion and adjusted EPS of $2.75 to $3.75, supported by leasing expansion and stronger railcar orders.
• The company maintained its $0.34 quarterly dividend, equivalent to a 3.7% yield, but analyst sentiment remains cautious with an average “Reduce” rating and a $45 price target.

Greenbrier Companies, Inc. (The) (NYSE:GBX - Get Free Report) hit a new 52-week low during mid-day trading on Tuesday following a dissappointing earnings announcement. The stock traded as low as $36.46 and last traded at $36.8660, with a volume of 39,686 shares changing hands. The stock had previously closed at $38.30.

The transportation company reported $0.39 EPS for the quarter, missing the consensus estimate of $0.80 by ($0.41). The company had revenue of $591.00 million for the quarter, compared to analyst estimates of $605.10 million. Greenbrier Companies had a net margin of 4.07% and a return on equity of 6.49%. The firm's quarterly revenue was down 22.2% on a year-over-year basis. During the same period in the previous year, the business posted $1.26 EPS.

Greenbrier Companies Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, December 2nd. Shareholders of record on Wednesday, November 11th will be paid a dividend of $0.34 per share. This represents a $1.36 annualized dividend and a yield of 3.7%. The ex-dividend date of this dividend is Monday, November 9th. Greenbrier Companies's payout ratio is 40.36%.

More Greenbrier Companies News

Here are the key news stories impacting Greenbrier Companies this week:

• Positive Sentiment: Management projected fiscal 2027 revenue of $2.8 billion to $3.2 billion and adjusted EPS of $2.75 to $3.75, supported by expansion in its leasing business. Greenbrier fiscal 2027 outlook
• Positive Sentiment: Recurring revenue increased 55% to $175 million in fiscal 2026, while fourth-quarter railcar orders reached approximately $600 million across 3,400 units, suggesting potential improvement in future demand and earnings visibility. Greenbrier long-term investor takeaways
• Positive Sentiment: Greenbrier maintained its quarterly dividend at $0.34 per share, equivalent to a $1.36 annualized payout and an approximately 3.6% yield. The dividend may provide support for income-oriented investors.
• Neutral Sentiment: The company elected Emanuel Pearlman as a Class III director. The appointment could strengthen board oversight, although no immediate financial impact was announced. Greenbrier board appointment
• Negative Sentiment: Fiscal fourth-quarter results missed expectations: reported EPS of roughly $0.39 versus an $0.80 consensus estimate, while revenue of $591 million came in below forecasts and fell 22.2% year over year. Profitability also deteriorated sharply from the prior year. Greenbrier fourth-quarter earnings
• Negative Sentiment: Operating profit, net income, and cash generation declined, while total liabilities rose to approximately $2.71 billion. Continued industry headwinds and the earnings miss remain the main reasons GBX shares have faced pressure despite the stronger order pipeline.

Analyst Ratings Changes

A number of brokerages have commented on GBX. Susquehanna downgraded Greenbrier Companies from a "positive" rating to a "neutral" rating and set a $52.00 target price on the stock. in a research note on Thursday, July 2nd. Weiss Ratings downgraded Greenbrier Companies from a "hold (c+)" rating to a "hold (c)" rating in a research note on Tuesday, September 1st. Finally, Wall Street Zen lowered Greenbrier Companies from a "hold" rating to a "sell" rating in a report on Saturday. Three investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, Greenbrier Companies presently has an average rating of "Reduce" and an average price target of $45.00.

Institutional Trading of Greenbrier Companies

Several large investors have recently made changes to their positions in the stock. Dimensional Fund Advisors LP raised its stake in shares of Greenbrier Companies by 0.7% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,979,546 shares of the transportation company's stock valued at $104,222,000 after acquiring an additional 13,153 shares in the last quarter. Atlas FRM LLC bought a new stake in Greenbrier Companies during the second quarter valued at about $38,599,688. Donald Smith & CO. Inc. acquired a new stake in shares of Greenbrier Companies in the second quarter valued at about $31,987,000. Deprince Race & Zollo Inc. bought a new position in shares of Greenbrier Companies in the first quarter worth about $20,312,000. Finally, Bank of New York Mellon Corp acquired a new position in shares of Greenbrier Companies during the 2nd quarter worth about $18,324,000. Institutional investors own 95.59% of the company's stock.

Greenbrier Companies Trading Down 2.9%

The firm has a market cap of $1.15 billion, a price-to-earnings ratio of 11.06 and a beta of 1.45. The firm has a 50-day moving average of $42.09 and a two-hundred day moving average of $48.47.

Greenbrier Companies Company Profile

Greenbrier Companies, Inc is a transportation equipment company that designs, manufactures and supplies freight railcars and related services. Its products include covered hopper cars, tank cars, gondolas, boxcars, intermodal equipment and railcars used to transport automobiles and other specialized cargo.

The company also provides railcar leasing and management services, maintenance, refurbishment, wheel services and parts. Through its manufacturing and service operations, Greenbrier supports railroads, leasing companies, shippers and other participants in the North American freight transportation industry.

Founded in 1974 and headquartered in Lake Oswego, Oregon, Greenbrier has expanded its operations beyond the United States, with manufacturing and service activities serving customers in North America and international markets.

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