TheChek News Flow

Reports Q3 (May) earnings of $1.03 per share, excluding non-recurring items, $0.29 better than the Capital IQ Consensus Estimate of $0.74; revenues rose 36.8% year/year to $593.3 mln vs the $572.4 mln consensus.
Q3 highlights:

• Revs were up 18.1% sequentially, primarily due to increased deliveries
• GMs were 16.3%, up from 11.5% in Q2 - Margins were up 480 bps driven by improved efficiencies, pricing and product mix

Backlog/Deliveries/Orders:

• Railcar backlog as of May 31, 2014 was 26,400 units with an estimated value of $2.75 billion (average unit sale price of $104,000), compared to 15,200 units with an estimated value of $1.54 billion (average unit sale price of $101,000) as of February 28, 2014.
• New railcar deliveries totaled 4,300 units for the quarter, compared to 3,400 units for the quarter ended February 28, 2014.
• Orders for 15,600 new railcars valued at $1.65 billion received during the quarter. After quarter end, Greenbrier received orders for an additional 2,700 units valued at approximately $320 million.
• Marine backlog as of May 31, 2014 totaled approximately $110 million.

Share repurchase update:
Repurchased 352,000 shares of common stock at a cost of $16.0 million during the quarter. To date, repurchased 641,327 shares of common stock at a cost of $26.3 million under a $50 million share repurchase program.

Guidance:

• Co issues upside guidance for Q4, sees EPS of $0.95-1.05, excluding non-recurring items, vs. $0.87 Capital IQ Consensus Estimate.
• Co issues upside guidance for FY14, sees EPS of $2.98-3.08, excluding non-recurring items, vs. $2.62 Capital IQ Consensus Estimate
• Co also sees FY14 revs of over $2.2 bln vs. $2.16 bln Capital IQ Consensus Estimate.
  
• Deliveries in the fourth quarter to be between 4,300 units and 4,600 units, resulting in fiscal 2014 deliveries of 15,700 units to 16,000 units