Greenbrier Gets New Railcar Orders Worth $670M in Q1; Shares Jump

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Transportation manufacturing company The Greenbrier Companies, Inc. (GBX) received new orders for 6,200 railcars valued at $670 million during the first fiscal quarter ended November 30.

Following the announcement on Wednesday, shares of the company rose 1.6% in the extended trading session to end the day at $40.11.

Order Details

The orders comprise several types of railcars, including intermodal, boxcars, gondolas, tank cars, covered hoppers and automobile-carrying railcars.

Furthermore, under its railcar conversion program, Greenbrier has received orders to rebody 1,400 railcars.

The company received orders for 1,300 railcar conversions in Fiscal Year 2021. (See Insiders’ Hot Stocks on TipRanks)

CEO Comments

The Chairman and CEO of Greenbrier, William A. Furman, said, “As we close the first fiscal quarter, Greenbrier has received orders already equal to 36% of the total orders received in Fiscal Year 2021.”

“These orders, along with our $2.8 billion new railcar backlog as of August 31, 2021, provide Greenbrier strong visibility for the Fiscal Year 2022 and beyond.  Importantly, it highlights the strength and flexibility of our global manufacturing and supply chain networks that support our integrated business model.”

About Railcar Conversion Program

Greenbrier’s railcar conversion program promotes conservation by upcycling older, inefficient equipment into new freight railcars. This helps reduce manufacturing waste by reusing key components.

About Greenbrier

Based out of Oregon, Greenbrier supplies equipment and services to freight transportation markets across the world. It designs, builds and sells freight railcars and marine barges in North America, Europe and Brazil.

Additionally, the company provides freight railcar wheel services, parts, maintenance and retrofitting services in North America.

Wall Street’s Take

On October 27, Cowen & Co. analyst Matt Elkott reiterated a Buy rating on the stock but lowered the price target to $51 from $52 (29.2% upside potential).

The analyst said, “We’re lowering our FY22 EPS estimate to $2.47, from $3.00. Our CY22 EPS estimate drops to $3.61, from $3.70.”

“We had been cautious into the print (estimate fine-tuning and 3Q positioning) but continue to favor the company longer-term and believe the selloff is a unique buying opportunity.”

Overall, the stock has a Strong Buy consensus rating based on 3 unanimous Buys. The average The Greenbrier Companies price target of $50.67 implies 28.3% upside potential. Shares have lost 17.3% over the past six months.

Bloggers’ Opinion

TipRanks data shows that financial blogger opinions are 60% Bullish on the stock, compared to the sector average of 68%.

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