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Greenbrier Lifts FY17 EPS View, Sees Higher Earnings In FY18 On Strong Orders

Greenbrier Companies, Inc. (GBX), a supplier of equipment and services to freight transportation markets, announced Wednesday that it expects to exceed previously announced earnings view for fiscal 2017, attributed to significant orders. The company also said that stronger revenue in fiscal 2018 will drive higher earnings per share than in 2017.

In pre-market activity, Greenbrier shares were gaining around 4.5 percent to $51.85.

In its statement, the company announced new orders during its fourth quarter totaling 2,500 railcar units valued at $200 million. Subsequent to quarter end, orders for another 1,400 units were received, valued at $120 million.

According to the firm, the orders signal a strong start to Greenbrier's fiscal 2018 and brings total orders received since May 31, 2017 to 3,900 units. The latest orders comprise a broad range of railcar types including double-stack intermodal units, covered hoppers for carrying a variety of products, automotive-carrying railcars, and tank cars.

For the year, the company now expects to exceed previously announced adjusted earnings per share guidance of $3.45 to $3.65.

On average, eight analysts polled by Thomson Reuters expect earnings of $3.54 per share for the year. Analysts' estimates typically exclude special items.

William Furman, Chairman and CEO said, "Order activity in the fourth quarter and early fiscal 2018 demonstrates the benefit of focusing on core North American business while we continue to gain traction internationally. More than 25% of orders announced today originated from markets outside North America."

In fiscal 2017, Greenbrier received orders for over 16,500 railcars in North America, Europe and Brazil valued at $1.5 billion. The number and value of railcars ordered in fiscal 2017 was more than double fiscal 2016, the company said.

While markets remain competitive, the company said it expects earnings per share growth in fiscal 2018 to be driven by higher revenue and deliveries from domestic and foreign markets.

Greenbrier expects to announce fiscal 2017 earnings and provide additional fiscal 2018 guidance on October 27.

by RTT Staff Writer

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