Greenbrier(GBX) 2023Q3 Earnings Summary
Bullish Points:
1. Revenue for the nine months ended May 31, 2023 was $2,926.6 million, up from $2,027.0 million in the same period last year.
2. Net earnings attributable to Greenbrier for the nine months ended May 31, 2023 were $37.7 million, up from $26.7 million in the same period last year.
3. Diluted earnings per common share for the nine months ended May 31, 2023 were $1.13, up from $0.79 in the same period last year.
4. Comprehensive income attributable to Greenbrier for the nine months ended May 31, 2023 was $59.7 million, up from $33.8 million in the same period last year.
5. New railcar orders of 14,700 units valued at approximately $1.9 billion during the nine months ended May 31, 2023.
6. Railcar backlog was 23,400 units with an estimated value of $2.9 billion as of May 31, 2023.
7. Manufacturing margin as a percentage of revenue increased by 3.5% due to operating at consistently higher production levels.
Bearish Points:
1. Inventory balance increased from $815.3 million in August 31, 2022, to $888.0 million in May 31, 2023.
2. Company recorded a $24.2 million impairment charge for Gunderson Facility assets, a $14.3 million loss on sale, and $2.1 million of severance, totaling $40.6 million in asset impairment, disposal, and exit costs.
3. Warranty accrual balance increased from $28.5 million in May 31, 2022, to $25.4 million in May 31, 2023.
4. The company sold the Portland Property in May 2023 but remains potentially liable for environmental issues related to the property.
In summary, Greenbrier has shown significant growth in revenue, net earnings, and diluted earnings per share for the nine months ended May 31, 2023. The company has also experienced an increase in new railcar orders and backlog. However, there are concerns regarding the increase in inventory balance, asset impairment, disposal, and exit costs, as well as potential environmental liabilities related to the Portland Property. For more information, you can read the original text of Greenbrier's financial report: https://www.sec.gov/Archives/edgar/data/923120/000095017023030731/gbx-20230531.htm
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