The Greenbrier Companies dips after missing Q1 profit estimates
The Greenbrier Companies (NYSE: GBX) shares are declining after the supplier of railroad freight car equipment reported first-quarter earnings below analysts’ projections. For the three months ended Nov. 30, Greenbrier posted earnings of $2.6 million, or $0.16 per share, considerably below Wall Street estimates of earning $0.46 per share. During the same period of 2006, the firm earned $1.9 million, or $0.12 per share. Profits were hurt by charges related to the closure of a Canadian facility and foreign exchange losses.
The Lake Oswego, Ore.-based company’s first-quarter revenue was $286.4 million, better than analyst estimates of $273 million and up from $246.6 million a year earlier. The revenue growth was attributed to acquisition related sales.
The firm said in a statement that it does not expect earnings in 2008 to meet the $2.22 per share earned in 2007. Greenbrier said a higher tax rate, lower new railcar deliveries and lower gains on equipment sales will negatively impact earnings. Wall Street analysts are projecting earnings of $2.58 per share during 2008.
In morning trading, GBX shares are down 10.49%, or $2.15, at $18.34. Over the last 52 weeks, shares have ranged from $17.25 to $38.99.
