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Actionable news in GBX: THE GREENBRIER COMPANIES Inc,

Greenbrier: Q2 Results Were Distrastrous

Summary

Greenbrier's FQ2 results were disastrous. The company missed on revenue and earnings.

New railcar orders were off 70% Y/Y and deliveries of 4,500 were a disappointment.

Results support my thesis that customers may be delaying deliveries in order to stem cash burn.

GBX was still up nearly 5% on the news. I will look to close my short position on any dips in the stock.

Greenbrier CEO Bill Furman. Source Biz Journal

Greenbrier's (NYSE:GBX) FQ2 results were a disaster. The company missed on all fronts. Revenue of $669 million was $60 million shy of the $730 million analysts were expecting. Earnings per share of $1.141 missed by $0.15. I assumed the company would meet revenue expectations due to deliveries from its backlog. However, results were worse than I could have imagined. Below is my take on the quarter:

Manufacturing Was A Disaster

Usually a stalwart, the Manufacturing segment was a complete disaster this quarter. This segment produces railcars, tank cars, intermodal cars, etc. and has traditionally been over 85% of total revenue; this quarter it fell to 68%.

Manufacturing revenue was down 35% sequentially as deliveries fell from 6,900 units last quarter to 4,500 this quarter...


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