Why Greenbrier (GBX) Stock Is Nosediving

Max Juang /
2024/07/08 11:31 am EDT

What Happened:

Shares of rail transportation company Greenbrier (NYSE:GBX) fell 14.4% in the morning session after the company reported second-quarter earnings results. Greenbrier's revenue unfortunately missed, and its EPS fell short of Wall Street's estimates. In addition, the company continued to burn cash. Looking ahead, guidance wasn't promising, as management lowered full-year revenue guidance at the midpoint, which is never a good sign. Overall, this was a bad quarter for Greenbrier.

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What is the market telling us:

Greenbrier's shares are somewhat volatile and over the last year have had 5 moves greater than 5%. But moves this big are very rare even for Greenbrier and that is indicating to us that this news had a significant impact on the market's perception of the business.

Greenbrier is down 3.6% since the beginning of the year, and at $42.63 per share it is trading 22.8% below its 52-week high of $55.25 from May 2024. Investors who bought $1,000 worth of Greenbrier's shares 5 years ago would now be looking at an investment worth $1,470.

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