Shares of Greenbrier (NYSE: GBX), a leading supplier of freight rail transportation equipment, plunged 5.38% in pre-market trading on Thursday. The sharp decline comes in the wake of the company's disappointing fourth-quarter results and weak full-year guidance, which have raised concerns among investors about its near-term prospects.
According to the latest earnings report, Greenbrier reported revenues of $762.1 million for the fourth quarter, representing a significant 11.7% year-over-year decline. This figure fell substantially short of analysts' expectations, missing estimates by a considerable 15.2%. The company's performance was further marred by its full-year revenue guidance, which also failed to meet analysts' projections, adding to the overall disappointment.
The negative sentiment surrounding Greenbrier's results is particularly notable within the context of the broader heavy transportation equipment sector. While the industry as a whole faced challenges in the fourth quarter, Greenbrier stood out for delivering the weakest performance against analyst estimates and the most disappointing full-year guidance update among its peers. This underperformance has likely contributed to the sharp sell-off in the company's stock, as investors reassess their outlook on Greenbrier's growth prospects in the competitive freight rail transportation market.
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