Greenbrier Stock Races Ahead In Premarket Trade After Upbeat Q3 Revenue

Greenbrier Cos (GBX) stock jumped 13.1% in premarket trading on Wednesday after the company’s fiscal third-quarter revenue topped Wall Street’s estimates.

The company’s revenue increased to $842.7 million from $820.2 million in the same quarter of the previous year. Wall Street was expecting the company to post $785.7 million in revenue, according to Fiscal.ai data.

Its net earnings for the quarter ended May 31 rose to $60 million, or $1.86 per share, compared with $33.9 million, or $1.06 per share, in the year-ago quarter.

The company builds and markets freight railcars in North America, Europe, and Brazil and owns a lease fleet of approximately 16,700 railcars.

Greenbrier said it was confident about long-term to medium-term demand in Europe, while demand in Brazil is also increasing.

"These results reflect our continued progress on operational initiatives across the business, including footprint optimization in Europe, insourcing expansion in Mexico, and disciplined execution in our Leasing & Fleet Management segment, which is steadily building recurring revenue,” CEO Lorie Tekorius said.

The company had a new railcar backlog of 18,900 units with an estimated value of $2.5 billion.

"We are confident that we will successfully renew or remarket all units as railcar availability in the North American railcar fleet is expected to remain tight due to supply side shrinkage from fewer builds and increased scrapping levels," an executive said on call with analysts.

Retail sentiment on Stocktwits about Greenbrier stock was in the ‘extremely bullish’ (92/100) territory, while retail chatter was ‘extremely high.’

One bullish user predicted that the stock could easily reach $60 by Wednesday.

https://stocktwits.com/Ride_the_wave/message/619644840  

Greenbrier stock has declined 23.5% this year, amid uncertainty related to tariffs.

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