Greenbrier Cos. (GBX) Reports Q2 EPS of $1.91, Beats on Revenues; Offers FY18 EPS Outlook Above Consensus

Note: EPS may not be comparable

Greenbrier Cos. (NYSE: GBX) reported Q2 EPS of $1.91, versus $0.97 reported last year. Revenue for the quarter came in at $629.3 million versus the consensus estimate of $612.75 million.

Second Quarter Highlights

• Net earnings attributable to Greenbrier for the quarter were $61.6million, or $1.91 per diluted share, on revenue of $629.3 million. Quarterly results included $0.89 per diluted share related to the Tax Cuts and Jobs Act (Tax Act) enacted December 22, 2017.
• Adjusted EBITDA for the quarter was $79.1 million, or 12.6% of revenue.
• Orders for 3,400 diversified railcars were received during this quarter, valued at over $265 million.
• New railcar backlog as of February 28, 2018 was 24,100 units with an estimated value of $2.3 billion.
• New railcar deliveries totaled 4,900 units for the quarter.
• Board increases quarterly dividend 9% to $0.25 per share, payable on May 16, 2018 to shareholders as of April 25, 2018.
• Subsequent to quarter end, Greenbrier's $119 million of 3.5% convertible notes converted into equity. Under the "if-converted" method, the shares were already included in EPS calculations and guidance. If the conversion would have occurred in February, total equity would have been $1.4 billion with total assets of $2.4 billion.

Business Outlook

Based on current business trends, industry forecasts and production schedules for fiscal 2018, Greenbrier believes:

• Deliveries will be approximately 20,000 – 22,000 units including Greenbrier-Maxion (Brazil) which will account for up to 10% of deliveries
• Revenue will be $2.4 – $2.6 billion
• Diluted EPS will be $5.00 including a second quarter benefit of $0.89 from the Tax Act and a lower tax rate going forward

GUIDANCE:

Greenbrier Cos. sees FY2018 EPS of $5.00, versus the consensus of $4.17. Greenbrier Cos. sees FY2018 revenue of $2.4-2.6 billion, versus the consensus of $2.55 billion.

For earnings history and earnings-related data on Greenbrier Cos. (GBX) click here.

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