Zinger Key Points
- Greenbrier reports Q1 FY24 revenue increase, robust backlog, but misses EPS estimates; shares climb.
- GBX sets FY24 targets with 22,500-25,000 unit deliveries and revised capital expenditure projections.
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Greenbrier Companies Inc GBX shares are trading higher by around 8% on Friday after the company reported Q1 FY24 results.
Revenue rose to $808.8 million (from $766.5 million a year ago) and above the consensus of $849.9 million.
The company's lease fleet utilization was 98%, and fleet size increased by 700 to 14,100 units.
GBX has secured orders for 5,100 new railcars worth $710 million and delivered 5,700 units in Q1.
As of Nov. 30, 2023, the new railcar backlog stood at 29,700 units with an estimated value of $3.8 billion.
Adjusted EBITDA came in at $93.2 million, with a margin of 11.5%.
Adjusted EPS of $0.96 missed the consensus of $0.73.
As of Nov. 30, cash and cash equivalents stood at $307.3 million.
The company's quarterly dividend per share of 30 cents is payable on Feb. 15, 2024, to shareholders of record as of Jan. 25, 2024.
Lorie L. Tekorius, CEO and President said, "Importantly, our new railcar backlog remains robust and is supported by quality products and customer loyalty, making Greenbrier a market leader. Our backlog, combined with programmatic railcar rebuilding activity not included in backlog, provides clear revenue visibility into 2025. In Leasing, the disciplined construction of our leased railcar fleet and increasing lease rates make doubling our high-margin recurring revenue an achievable goal in the years ahead."
FY24 Outlook: GBX continues to expect revenue of $3.40 billion – $3.70 billion vs. consensus of $3.58 billion.
The company targets to deliver 22,500 – 25,000 units, including around 1,000 units in Brazil.
GBX now projects capital expenditures of around $165 million in Manufacturing and $15 million in Maintenance Services and sees gross leasing investment of about $350 million in Leasing & Management Services.
The company anticipates proceeds from equipment sales of around $85 million.
Price Action: GBX shares are up 7.9% at $47.85 at last check Friday.
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