Morning Commentary: Greenbrier slips with lower shares on trimmed guidance; Trinity eyed

By Rebecca Melvin

New York, July 6 – U.S. convertibles were a little heavy in light volume on Wednesday as equities and oil prices traded weaker and gold prices were up as the holiday-shortened week played out, a New York-based trader said.

Financial markets were closed on Monday in observance of Independence Day.

The common shares of the Greenbrier Cos. Inc. were lower in the early going after the Lake Oswego, Ore.-based rail freight car maker reported third-quarter earnings that beat estimates but trimmed its full-year guidance.

The Greenbrier 3.5% convertibles due 2018 traded at 104 early Wednesday, which was down from 105.4 on Tuesday and 107.5 earlier this month, according to Trace data.

Greenbrier shares were down $2.27, or 8%, at $26.51.

Greenbrier said it expects full-year earnings to be $5.70 to $5.90 per share, which shaved the top end of Greenbrier’s prior guidance by $0.20 per share. It expects revenue to be $2.8 billion and full-year deliveries of between 20,000 and 21,000, which represents the lower half of its previous range.

Shares of Trinity Industries Inc., a Dallas-based railcar/industrial manufacturing company, were down about 2% at $18.62 early Wednesday, but the Trinity 3.875% convertibles due 2036 didn’t appear to have traded. They were last at 109.6 on July 1, according to Trace data.

Elsewhere, Whiting Petroleum Corp.’s 1.25% convertibles due 2020 remained untraded at 79.08 as oil prices slipped. West Texas Intermediate crude oil for August delivery traded down 1.1% to $46.11 per barrel on the New York Mercantile Exchange.

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