Rail transportation company Greenbrier (NYSE: GBX) will be reporting earnings this Monday after market close. Here’s what to expect.
Greenbrier missed analysts’ revenue expectations last quarter, reporting revenues of $576.5 million, down 31.6% year on year. It was a disappointing quarter for the company, with full-year revenue guidance missing analysts’ expectations significantly and full-year EPS guidance missing analysts’ expectations significantly.
Is Greenbrier a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Greenbrier’s revenue to decline 20.3% year on year, improving from the 27.9% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Greenbrier has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Greenbrier’s peers in the heavy machinery segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Wabtec delivered year-on-year revenue growth of 8.1%, missing analysts’ expectations by 2.6%, and Lindsay reported revenues up 5.2%, topping estimates by 7.3%. Wabtec traded down 2.5% following the results while Lindsay’s stock price was unchanged.
Read our full analysis of Wabtec’s results here and Lindsay’s results here.
In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the heavy machinery stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 6% on average over the last month. Greenbrier is down 10.4% during the same time and is heading into earnings with an average analyst price target of $44 (compared to the current share price of $38.11).
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