Greenbrier Cos. (NYSE: GBX) reported Q4 EPS of $0.80, $0.23 worse than the analyst estimate of $1.03. Revenue for the quarter came in at $689.2 million versus the consensus estimate of $659.89 million.

• Net earnings attributable to Greenbrier for the quarter were $30.9 million, or $0.94 per diluted share, on revenue of $689.2 million.
• Adjusted EBITDA for the quarter was $75.3 million, or 10.9% of revenue.
• New railcar deliveries totaled 6,000 units for the quarter.
• Diversified orders of 9,300 railcars were received during the quarter, valued at over $1.0 billion. Sequential increase in book-to-bill to 1.6x from 1.1x in the third quarter.
• New railcar backlog was 27,400 units with an estimated value of $2.7 billion.
• Board declares a quarterly dividend of $0.25 per share, payable on December 5, 2018 to shareholders of record as of November 14, 2018.

William A. Furman, Chairman and CEO, said, "Greenbrier delivered solid results for the fourth quarter and fiscal 2018. Orders for 21,900 railcars valued at $2.2 billion in 2018 are up more than 30% compared to 2017, approaching record order levels set in 2015. Additionally, 30% of Greenbrier's orders in 2018 came from international customers. Order momentum in the second half of fiscal 2018 corresponds with an improving North American market. Railcars in storage have been steadily declining and forecasts for annual railcar deliveries in 2019 and 2020 are expected to exceed 60,000 units each year. Greenbrier's backlog of 27,400 units, valued at $2.7 billion, is diverse by product type and geographic markets served, providing visibility through fiscal 2019 and into 2020."

Furman added, "Greenbrier's earnings performance in fiscal 2018 was our third best ever. Revenue and deliveries were within the guidance range for the year, and aggregate gross margin remains favorable considering the North American freight railcar pricing environment. Greenbrier ended the year with a robust balance sheet, ample liquidity and low levels of debt, positioning us for strong operating cash flow in fiscal 2019."

"Our strategy to diversify internationally is succeeding. Greenbrier has firmly established commercial and manufacturing operations on four continents. In August, Greenbrier acquired a majority ownership of Turkish railcar builder Rayvag. This morning GBX announced its intention to establish a joint venture with SAR to execute railway projects and supply railcars for profitable growth of the Saudi freight rail market. This investment supports the objectives of the Kingdom's Vision 2030 plan. Recent trade policy advancements in America are also favorable to Greenbrier's international business. This includes progress by the United States, Mexico and Canada on a free trade agreement and Congressional action that blunts the advancement of state-owned enterprises and supports free markets for railcar manufacturing and its vast supply chain," Furman concluded.

GUIDANCE:

Greenbrier Cos. sees FY2018 EPS of $4.20-$4.40, versus the consensus of $4.13. Greenbrier Cos. sees FY2018 revenue of $3 billion, versus the consensus of $2.57 billion.

For earnings history and earnings-related data on Greenbrier Cos. (GBX) click here.