Freightcar America (NASDAQ:RAIL) Posts Quarterly Earnings Results, Misses Estimates By $0.05 EPS

Key Points

• Freightcar America reported quarterly earnings of $0.09 EPS, missing the consensus estimate of $0.14 by $0.05.
• The company experienced a negative return on equity of 18.77% and a negative net margin of 2.79%.
• Despite missing earnings expectations, shares of Freightcar America traded up to $9.92, with a market cap of $188.88 million.

Freightcar America (NASDAQ:RAIL - Get Free Report) released its quarterly earnings results on Monday. The transportation company reported $0.09 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.14 by ($0.05), Zacks reports. Freightcar America had a negative return on equity of 14.89% and a negative net margin of 2.21%. The company had revenue of $118.60 million for the quarter, compared to analysts' expectations of $118.64 million. Freightcar America updated its FY 2025 guidance to EPS.

Freightcar America Price Performance

Shares of RAIL stock traded down $0.23 during midday trading on Friday, reaching $9.13. 107,206 shares of the company traded hands, compared to its average volume of 229,653. The firm's 50 day simple moving average is $9.58 and its two-hundred day simple moving average is $8.41. Freightcar America has a 1-year low of $3.32 and a 1-year high of $16.10. The firm has a market cap of $174.56 million, a PE ratio of -13.04 and a beta of 1.85.

Insider Activity

In other news, insider Celia Perez sold 7,982 shares of Freightcar America stock in a transaction that occurred on Tuesday, June 24th. The shares were sold at an average price of $8.59, for a total transaction of $68,565.38. Following the completion of the sale, the insider directly owned 50,326 shares in the company, valued at approximately $432,300.34. This trade represents a 13.69% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 28.70% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the business. Jane Street Group LLC grew its stake in Freightcar America by 13.1% in the 1st quarter. Jane Street Group LLC now owns 108,724 shares of the transportation company's stock worth $601,000 after acquiring an additional 12,610 shares during the period. Goldman Sachs Group Inc. grew its stake in Freightcar America by 58.8% in the 1st quarter. Goldman Sachs Group Inc. now owns 106,656 shares of the transportation company's stock worth $590,000 after acquiring an additional 39,506 shares during the period. Dynamic Technology Lab Private Ltd purchased a new stake in Freightcar America in the 1st quarter worth approximately $61,000. Finally, Cubist Systematic Strategies LLC purchased a new stake in Freightcar America in the 1st quarter worth approximately $147,000. 31.96% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of brokerages recently commented on RAIL. Wall Street Zen downgraded shares of Freightcar America from a "buy" rating to a "hold" rating in a research report on Wednesday, May 7th. Northcoast Research began coverage on shares of Freightcar America in a research report on Thursday, May 1st. They issued a "buy" rating and a $9.00 price objective for the company.

About Freightcar America

FreightCar America, Inc, through its subsidiaries, engages in design, manufacture, and sale of railcars and railcar components for the transportation of bulk commodities and containerized freight products in the United States and Mexico. It operates in two segments, Manufacturing and Parts. The company offers a range of railcars, including open top hoppers, mill gondola cars, intermodal and non-intermodal flat cars, coal cars; bulk commodity cars covered hopper cars, coil steel cars, boxcars, woodchip hoppers, aluminum vehicle carriers, and articulated bulk container railcars.