Greenbrier Revenue, Profit Growth Miss Expectations

Greenbrier Cos. on Wednesday logged higher revenue and profit in its third quarter, though growth came in below Wall Street expectations.

The Lake Oswego, Ore., company has benefited recently from greater scale, diversification and efforts to boost efficiency.

In the latest quarter, new railcar deliveries increased 9.6% from the February-ended quarter to 5,700 units.

New railcar backlog at the end of the quarter fell slightly to 45,100 units from 46,000 units at the end of February. Meanwhile, the value of the backlog increased to $4.86 billion from $4.78 billion as average sale price ticked up.

Overall, for the fiscal third quarter ended May 31, Greenbrier posted a profit of $42.8 million, or $1.33 a share, up from $33.6 million, or $1.03 a share, a year earlier.

The quarter's results included 16 cents a share in costs related to a potential acquisition that fell apart in June and new tank-car safety regulations.

Revenue jumped 20% to $714.6 million.

Analysts polled by Thomson Reuters had expected earnings of $1.63 a share on revenue of $740.7 million.

The company narrowed its full-year earnings outlook to $5.70 a share to $5.85 a share from its previous guidance for $5.65 to $5.95 a share in earnings. Greenbrier backed its revenue and delivery outlook.

Write to Chelsey Dulaney at [e-mail]

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