iStock

Greenbrier Cos.  (GBX - Get Report)  declined sharply after its second-quarter outlook failed to inspire confidence on Wall Street Friday.

Greenbrier dropped $3.62 - about 9.6% - to $33.76 the day after its earnings-per-share outlook for the quarter came in way under Wall Street expectations. The company said it expects earnings of 7 cents to 9 cents a share while consensus estimates were 42 cents.

The company had problems during the quarter that affected earnings by 29 cents a share, and it recorded one-time charge of 14 cents in response to closing two repair shops and paying for loss contingencies on some railcar contracts.

Greenbrier CEO William Furman said he was disappointed by the company's earnings. Manufacturing issues at its facility in Romania created losses for the company's European operations along with problems with supplier deliveries and the loss contingencies.

Its Gunderson unit also "weakened results" because labor costs increased while railcar build activity fell. Furman cited challenges with its repair operations, including winter weather and closure costs, as another reason earnings were so poor for the quarter. 

Greenbrier's expected revenue during the quarter is $650 million, which would beat estimates of $574 million. The company also announced it had received an order during the quarter for 3,800 railcars that Greenbrier values at about $450 million. 

The stock is on pace to trade at its lowest price in the past two years.

Shares of the company have been falling at a steady rate since trading at a peak high of $44.02 on Feb. 20. The stock has fallen about 13.9% so far in 2019.