Rail transportation company Greenbrier (NYSE:GBX) will be reporting earnings tomorrow after the bell. The market has been eagerly anticipating this event, and investors are wondering what to expect from the company’s financials.
Last Quarter’s Performance
In its previous quarter, Greenbrier met analysts’ revenue expectations, reporting revenues of $1.05 billion, up 3.5% year on year. This was a satisfactory performance for the company, with a solid beat of analysts’ EPS estimates but a significant miss of analysts’ sales volume estimates.
Earnings Expectations
This quarter, analysts are expecting Greenbrier’s revenue to grow 5% year on year to $849.5 million, in line with the 5.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.16 per share.
Analysts’ Estimates and Reconfirmations
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Greenbrier has missed Wall Street’s revenue estimates twice over the last two years.
Industry Trends and Outlook
The whole sector has faced a sell-off over the last month with stocks in Greenbrier’s peer group down 5.7% on average. Greenbrier is down 7.6% during the same time and is heading into earnings with an average analyst price target of $62.50 (compared to the current share price of $61.77).
The Importance of Cash Flow
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense—as long as the price is right. Greenbrier’s financials will be closely watched for any signs of cash flow management and share buybacks.
What Investors Should Look Out For
Investors should keep an eye on several key metrics when reviewing Greenbrier’s earnings report, including:
- Revenue growth: Will Greenbrier meet or beat analysts’ revenue expectations?
- Earnings per share (EPS): Will adjusted EPS come in at $1.16 per share as expected?
- Cash flow management: How is the company managing its cash reserves and using them to drive growth?
Conclusion
Greenbrier’s earnings report tomorrow will be a closely watched event, particularly given the recent sell-off in heavy machinery stocks. Investors should pay close attention to the company’s financials and any signs of cash flow management or share buybacks.
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Disclaimer
The information contained in this article is for general information purposes only. It is not intended to be investment advice or a recommendation to buy or sell any securities. Always do your own research before making investment decisions.
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