Freightcar America (NASDAQ:RAIL) Issues Quarterly Earnings Results

Key Points

• Q2 earnings missed: FreightCar America reported EPS of ($0.04), missing the consensus ($0.03) by $0.01 and posted revenue of $64.31M versus $74.60M expected; the company showed a negative return on equity of 15.54% despite a reported net margin of 7.61%.
• Stock and valuation: Shares fell to $8.06 (down $0.24) on the news with ~200,827 shares traded; the stock has a market cap of $153.7M, a PE of 7.26, and is trading below its 50- and 200-day moving averages (~$9.80 and $10.07).
• Analyst and ownership backdrop: Coverage is mixed (one Strong Buy, one Hold) though MarketBeat shows a consensus "Buy," and institutional investors own about 31.96% of the company after several small recent inflows from firms like BNP Paribas and RBC.

Freightcar America (NASDAQ:RAIL - Get Free Report) announced its earnings results on Monday. The transportation company reported ($0.04) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.03) by ($0.01), FiscalAI reports. Freightcar America had a negative return on equity of 15.54% and a net margin of 7.61%.The business had revenue of $64.31 million for the quarter, compared to analyst estimates of $74.60 million.

Freightcar America Stock Performance

Shares of NASDAQ RAIL traded down $0.24 during trading on Monday, hitting $8.06. 200,827 shares of the company were exchanged, compared to its average volume of 174,943. Freightcar America has a 12-month low of $6.02 and a 12-month high of $14.90. The company has a fifty day moving average price of $9.80 and a 200-day moving average price of $10.07. The firm has a market capitalization of $153.70 million, a PE ratio of 7.26 and a beta of 1.55.

Wall Street Analysts Forecast Growth

RAIL has been the topic of several recent research reports. Wall Street Zen cut shares of Freightcar America from a "buy" rating to a "hold" rating in a research note on Saturday, March 14th. Weiss Ratings raised shares of Freightcar America from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Monday, February 23rd. One equities research analyst has rated the stock with a Strong Buy rating and one has given a Hold rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Buy".

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. BNP Paribas Financial Markets raised its holdings in shares of Freightcar America by 208.6% during the 3rd quarter. BNP Paribas Financial Markets now owns 2,935 shares of the transportation company's stock worth $29,000 after acquiring an additional 1,984 shares during the period. Royal Bank of Canada raised its holdings in shares of Freightcar America by 2,843.5% during the 4th quarter. Royal Bank of Canada now owns 4,062 shares of the transportation company's stock worth $45,000 after acquiring an additional 3,924 shares during the period. Quarry LP purchased a new position in shares of Freightcar America during the 3rd quarter worth $53,000. State of Wyoming purchased a new position in shares of Freightcar America during the 2nd quarter worth $63,000. Finally, Dynamic Technology Lab Private Ltd purchased a new stake in Freightcar America in the 1st quarter valued at about $61,000. Hedge funds and other institutional investors own 31.96% of the company's stock.

Freightcar America Company Profile

FreightCar America, Inc is a designer and manufacturer of specialized railroad freight cars, offering a diverse range of products that include tank cars, open and covered hoppers, gondolas, boxcars and centerbeam lumber cars. The company supports both new car construction and the rebuilding of existing fleets, providing custom engineering solutions to meet customer specifications and industry regulations. FreightCar America also supplies aftermarket parts, maintenance services and component remanufacturing for its own fleet and for third-party car owners.

Headquartered in Chicago, Illinois, FreightCar America traces its origins to early 20th-century railcar builders and began trading as an independent, publicly-listed company on the NASDAQ under the ticker RAIL following a spin-off in 2010.

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