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Railcar manufacturer Greenbrier Companies' shares spike on earnings beat

A worker paints a refrigerated railcar at the Greenbrier Cos.' Gunderson railcar plant in Portland, Oregon.
Natalie Behring | Bloomberg | Getty Images
A worker paints a refrigerated railcar at the Greenbrier Cos.' Gunderson railcar plant in Portland, Oregon.

Shares of Oregon-based Greenbrier Companies climbed Wednesday after the company reported second-quarter earnings that beat Street expectations.

The stock closed 10 percent higher at $47.25 on Wednesday.

The railcar manufacturer reported adjusted second-quarter earnings of $1.09 per share on sales of $566 million, topping Thomson Reuters consensus estimates of 84 cents on sales of $521 million for the quarter.

The company also announced a 5 percent increase in its quarterly dividend yield, upping the amount to 22 cents per share.

For the full year 2017, Greenbrier said it expects profit to fall between $3.25 and $3.75 per share, excluding items, compared to a Reuters earnings forecast of $3.46 per share.

Greenbrier added that it delivered close to 4,000 new railcars in the second quarter and expects to deliver between 14,000 and16,000 new units in 2017.

"We are focused on our two-part strategy to protect and enhance core North American businesses during this time of market inconstancy while we also expand internationally in targeted regions that offer promising growth opportunities for rail transportation," CEO William Furman said in a statement.

Furman said the company is focused on extending its global reach, aiming to serve more customers across more continents in the coming quarters.

As of Wednesday's close Greenbrier's shares were up more than 70 percent in the past 12 months.

GBX 12-month performance 

Source: FactSet