Greenbrier Companies' Q2 Results Beat Expectations, Analyst Remains Bullish

Stephens & Co.'s Justin Long raised their price target on Greenbrier Companies (NYSE: GBX) by 4.8% from $62 to $65 on 2024/04/08. The analyst maintained their Strong Buy rating on the stock.

In a research note to investors, Long highlighted the company's strong Q2 2024 results, which came in above the Street consensus. Greenbrier reported earnings per share (EPS) of $1.03, beating the Zacks Consensus Estimate of $0.76 and showing a 4% increase from Q2 2023's $0.99. However, the company's revenue of $862.7 million missed the Zacks Consensus Estimate of $895.3 million and was down 23% from Q2 2023's $1.12 billion.

Looking ahead, Long expressed optimism about Greenbrier Companies' future prospects, stating that the company's story "remains poised for a continuation of positive momentum." Long cited management's guidance for FY 2024, which included a raise in revenue guidance to $3.5 billion to $3.7 billion and a "likely-to-prove-conservative" margin outlook.

CEO & President Lorie L. Tekorius also commented on the company's performance, stating, "Greenbrier achieved consolidated gross margin in the mid-teens for the second consecutive quarter as strong momentum continued across our business." Tekorius highlighted Greenbrier's broad product lineup, extensive market relationships, supportive customer experience, and robust lease renewals as factors contributing to the company's ongoing success.

It's worth noting that 100% of top-rated analysts currently rate GBX as a Strong Buy or Buy, with no analysts recommending a Hold and none suggesting selling the stock. This positive sentiment is reflected in the stock's performance. Since Greenbrier's latest quarterly report on April 5, 2024, the stock price has increased by 1.7%. Year-over-year, the stock has surged by an impressive 62.4%, outpacing the S&P 500, which has risen by 26.6% during the same period.

Stephens & Co. analyst Justin Long, who raised the price target on Greenbrier, is ranked in the top 10% of Wall Street analysts by WallStreetZen. With an average return of 13.6% and a win rate of 72.6%, Long specializes in the Industrials, Consumer Cyclical, and Technology sectors.

Greenbrier Companies, Inc., established in 1981 and headquartered in Lake Oswego, OR, is a leading manufacturer of railroad freight car equipment in the U.S. and internationally. The company also produces marine barges and offers wheel services, railcar refurbishment, parts, leasing, and other services to the railroad industry.

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