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    The Greenbrier (GBX): Analyst sentiment is Down While GBX makes changes in Business Units

    By Ali Hassan

    Jan 29,2021

    10:43 AM UTC

    With the appointment of a new director and several managerial transitions, The Greenbrier begins 2021 with a new plan.

    Despite disappointing first-quarter 2021 results, The Greenbrier (GBX) stock is moving up—trading around its 52-week high. Thanks to the firm’s decision to make changes in management and appointing a new director.

    The company has appointed four-star Admiral Thomas B. Fargo, USN (ret.) as its Lead Director. Fargo is an experienced geek at this position and has been part of Greenbrier’s board as an independent member since 2015.

    What’s Next?

    The Greenbrier (GBX) had a bad first quarter as it reported revenues of $403 million missing analysts estimates by 8%. Even worse for the company, the business reported a statutory loss of US$0.30 per share.

    Now, investors would be looking at what analysts rate the stock in this year and how the company takes on its operational activities.

    Five of the analysts that are following Greenbrier have made consensus estimates for the company. Based on the latest Q1 results, analysts believe that the company will end FY21 with total revenues of around $1.90 billion. This means that Greenbrier would face a 22% dip in its sales during this year. Moreover, the statutory loss is expected to reach $0.077 in 2021.

    The analyst’s sentiment for Greenbrier is down regarding its potential financial delivery this year. However, surprisingly, analysts have lifted GBX’s shares price to $36.20. They believe that the lower earnings per share would not impact its stock price for the long-term period.

    On the other side, the company has made some notable changes at the managerial level. The recent changes have been made across Greenbrier’s following business segments:

    • Commercial & Leasing
    • Greenbrier Manufacturing Organization (GMO)
    • Greenbrier Rail Services (GRS)
    • Greenbrier Management Services (GMS), and in Human Resources.

    With changes in the following business units, the company intends to develop the future generation to maintain continuity in its current strategies and operations. Also, this should be a healthy shift for the company to enhance its leadership going forward.

    Furthermore, the appointment of Fargo as a lead director of the company would ensure credibility. The CEO of Greenbrier, William A. Furman stated that the directors bring valuable perspectives as the firm executes its strategy. Furman further added that Fargo’s experience would help the company in driving market competitiveness and improving value for all Greenbrier stakeholders.

    Conclusion

    Greenbrier (GBX) is going through a managerial transition. This could probably change the direction of the company during these tough circumstances. So, we might see things to get better for the company in the long-term.

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