Heavy Transportation Equipment Stocks Q3 Recap: Benchmarking Greenbrier (NYSE:GBX)

Wrapping up Q3 earnings, we look at the numbers and key takeaways for the heavy transportation equipment stocks, including Greenbrier (NYSE:GBX) and its peers.

Heavy transportation equipment companies are investing in automated vehicles that increase efficiencies and connected machinery that collects actionable data. Some are also developing electric vehicles and mobility solutions to address customers’ concerns about carbon emissions, creating new sales opportunities. Additionally, they are increasingly offering automated equipment that increases efficiencies and connected machinery that collects actionable data. On the other hand, heavy transportation equipment companies are at the whim of economic cycles. Interest rates, for example, can greatly impact the construction and transport volumes that drive demand for these companies’ offerings.

The 13 heavy transportation equipment stocks we track reported a mixed Q3. As a group, revenues missed analysts’ consensus estimates by 1%.

Thankfully, share prices of the companies have been resilient as they are up 7.1% on average since the latest earnings results.

Greenbrier (NYSE:GBX)

Having designed the industry’s first double-decker railcar in the 1980s, Greenbrier (NYSE:GBX) supplies the freight rail transportation industry with railcars and related services.

Greenbrier reported revenues of $759.5 million, down 27.9% year on year. This print fell short of analysts’ expectations by 0.6%. Overall, it was a slower quarter for the company with full-year revenue guidance missing analysts’ expectations and full-year EPS guidance missing analysts’ expectations significantly.

Greenbrier achieved the highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 4% since reporting and currently trades at $47.08.

Read our full report on Greenbrier here, it’s free for active Edge members.

Best Q3: REV Group (NYSE:REVG)

Offering the first full-electric North American fire truck, REV (NYSE:REVG) manufactures and sells specialty vehicles.

REV Group reported revenues of $664.4 million, up 11.1% year on year, outperforming analysts’ expectations by 4.5%. The business had a stunning quarter with a solid beat of analysts’ EBITDA estimates.

The market seems happy with the results as the stock is up 14.6% since reporting. It currently trades at $63.75.

Is now the time to buy REV Group? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Wabash (NYSE:WNC)

With its first trailer reportedly built on two sawhorses, Wabash (NYSE:WNC) offers semi trailers, liquid transportation containers, truck bodies, and equipment for moving goods.

Wabash reported revenues of $381.6 million, down 17.8% year on year, in line with analysts’ expectations. It was a disappointing quarter as it posted full-year revenue and EPS guidance missing analysts’ expectations significantly.

Wabash delivered the weakest full-year guidance update in the group. Interestingly, the stock is up 11% since the results and currently trades at $9.23.

Read our full analysis of Wabash’s results here.

Federal Signal (NYSE:FSS)

Developing sirens that warned of air raid attacks or fallout during the Cold War, Federal Signal (NYSE:FSS) provides safety and emergency equipment for government agencies, municipalities, and industrial companies.

Federal Signal reported revenues of $555 million, up 17% year on year. This number surpassed analysts’ expectations by 1.9%. It was a strong quarter as it also logged full-year EPS guidance beating analysts’ expectations and a solid beat of analysts’ revenue estimates.

The stock is down 12.4% since reporting and currently trades at $113.61.

Read our full, actionable report on Federal Signal here, it’s free for active Edge members.

PACCAR (NASDAQ:PCAR)

Founded more than a century ago, PACCAR (NASDAQ:PCAR) designs and manufactures commercial trucks of various weights and sizes for the commercial trucking industry.

PACCAR reported revenues of $6.67 billion, down 19% year on year. This result topped analysts’ expectations by 0.6%. Aside from that, it was a mixed quarter as it also recorded an impressive beat of analysts’ EBITDA estimates but a significant miss of analysts’ adjusted operating income estimates.

The stock is up 18.4% since reporting and currently trades at $115.71.

Read our full, actionable report on PACCAR here, it’s free for active Edge members.

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