Some homework on my part, just to get familiar with reading 10-Ks and 10-Qs. The numbers for WAB are from Saul’s earlier e-mail.
Revenue (Sales) in millions of dollars:
2010 - 1507 756
2011 - 1968 1243
2012 - 2391 1807
2013 - 2566 1756
2014 - 3044 2203
Diluted earnings per common share:
2010 - $1.28 0.21
2011 - $1.85 0.24
2012 - $2.60 1.91
2013 - $3.04 (0.41)
2014 - $3.62 3.41
December quarter earnings in cents:
2010 - 32 0.33 (Loss in first two quarters)
2011 - 48 0.42 (Loss in the three previous quarters)
2012 - 67 0.26
2013 - 79 0.64 (2.10) loss in Q3
2014 - 95 1.43
Net Earnings in Millions (Revenue - COGS - Operating expenses):
2010 - 123 4
2011 - 170 6
2012 - 252 59
2013 - 292 (11)
2014 - 352 112
Cash 425 M 119 M
Debt 521 M 419 M
MktCap 9.14B 1.71B
PE 26.20 12.54
GBX Fiscal Year End is (10-K): August 31, 2014
WAB Fiscal Year End is (10-K): December 31, 2014
GBX: 2013 includes a non-cash goodwill impairment charge of $71.8 million net of tax and a restructuring charge of $1.8 million net of tax.
About GBX from the company web-site:
THE GREENBRIER COMPANIES [NYSE: GBX] is one of the leading designers, manufacturers and marketers of railroad freight car equipment in North America and Europe, and a manufacturer and marketer of ocean-going marine barges in North America. We are a leading provider of railcar refurbishment and parts, leasing and other services to the railroad and related transportation industries in North America.
About WAB from the company web-site:
The original Westinghouse Air Brake was founded in 1869 by George Westinghouse shortly after he successfully demonstrated the first straight air brake systems to the railroad industry.
Today, Wabtec manufactures a broad range of products for locomotives, freight cars and passenger transit vehicles. The company also builds new locomotives up to 4,000 horsepower and provides aftermarket services.
Conclusion: GBX is still a comparatively smaller company, just breaking out into a growth phase. The “volatility” in the stock price is observed in Q3-Q4 of 2014 and may have been due to oil, The stock price dropped from all time high of ~$75 to $45. The company came out and issued guidance that other segments are picking up the slack left by oil.
I could not get a handle on the Goodwill in Q3 of '13 that causes the bilp the earnings. I don’t see the share price being affected by this blip, can someone explain why?
I’d say I could put some money into this, but have to watch this like a hawk before it gets to any where close to being a stable growth company like WAB.
It’s my first time doing this, using it as a learning experience.
I still haven’t completed reading the FAQ, so please pardon any mistakes you come across.