FreightCar America Crushes Estimates

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FreightCar America (NAS: RAIL) reported earnings on Feb. 17. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), FreightCar America crushed expectations on revenues and beat expectations on earnings per share.

Compared with the prior-year quarter, revenue expanded significantly and GAAP earnings per share increased.

Margins grew across the board.

Revenue details
FreightCar America logged revenue of $187.1 million. The six analysts polled by S&P Capital IQ predicted net sales of $126.5 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $51.0 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.71. The six earnings estimates compiled by S&P Capital IQ predicted $0.14 per share. GAAP EPS were $0.71 for Q4 versus -$0.29 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 8.9%, 900 basis points better than the prior-year quarter. Operating margin was 4.3%, 1,590 basis points better than the prior-year quarter. Net margin was 4.5%, 1,130 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $194.6 million. On the bottom line, the average EPS estimate is $0.16.

Next year's average estimate for revenue is $708.6 million. The average EPS estimate is $1.35.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 755 members out of 793 rating the stock outperform, and 39 members rating it underperform. Among 247 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 240 give FreightCar America a green thumbs-up, and seven give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on FreightCar America is outperform, with an average price target of $28.50.

Over the decades, small-cap stocks like FreightCar America have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Get instant access to this free report.

At the time this article was published

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