Greenbrier Companies Inc GBX shares are trading higher by around 8% on Friday after the company reported Q1 FY24 results.
Q1 FY24 Results Overview
Greenbrier’s Q1 FY24 revenue rose to $808.8 million from $766.5 million a year ago, surpassing the consensus of $849.9 million.
The company’s lease fleet utilization hit 98%, with fleet size increasing by 700 to 14,100 units.
GBX secured orders for 5,100 new railcars worth $710 million and delivered 5,700 units in Q1.
The new railcar backlog as of Nov. 30, 2023, 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, while missing the consensus of $0.73, reflects a competitive landscape.
Financial Position and Dividend
As of Nov. 30, 2023, Greenbrier had cash and cash equivalents totaling $307.3 million.
The company declared a quarterly dividend per share of 30 cents payable on Feb. 15, 2024.
CEO’s Forward-looking Statements
Lorie L. Tekorius, CEO and President, emphasized the company’s robust new railcar backlog and clear revenue visibility into 2025. Tekorius articulated that Greenbrier’s backlog, in conjunction with programmatic railcar rebuilding activity, provides a sturdy foundation for future growth in revenue.
FY24 Outlook
For FY24, GBX continues to expect revenue of $3.40 billion – $3.70 billion versus the consensus of $3.58 billion.
The company targets to deliver 22,500 – 25,000 units, which includes an allocation of around 1,000 units in Brazil.
GBX projects capital expenditures of around $165 million in Manufacturing and $15 million in Maintenance Services and anticipates gross leasing investment of about $350 million in Leasing & Management Services.
The company also anticipates proceeds from equipment sales of around $85 million.
Market Reaction
On the back of the optimistic results and outlook, GBX shares soared by 7.9% to $47.85 at last check on Friday.
Analysis
Also Read: Greenbrier Likely To Report Surge In Q1 Earnings; Here’s A Look At Recent Price Target Changes By The Most Accurate Analysts
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