FreightCar America Increases Sales but Misses Revenue Estimate

FreightCar America (Nasdaq: RAIL  ) reported earnings on Aug. 6. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), FreightCar America missed estimates on revenues and missed estimates on earnings per share.

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

Margins grew across the board.

Revenue details
FreightCar America booked revenue of $181.2 million. The seven analysts polled by S&P Capital IQ looked for a top line of $187.6 million on the same basis. GAAP reported sales were 86% higher than the prior-year quarter's $97.6 million.

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 $0.46. The nine earnings estimates compiled by S&P Capital IQ anticipated $0.57 per share. GAAP EPS of $0.46 for Q2 were much higher than the prior-year quarter's $0.02 per share.

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 9.4%, 530 basis points better than the prior-year quarter. Operating margin was 5.2%, 820 basis points better than the prior-year quarter. Net margin was 3.1%, 290 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $160.8 million. On the bottom line, the average EPS estimate is $0.39.

Next year's average estimate for revenue is $711.5 million. The average EPS estimate is $2.11.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 740 members out of 788 rating the stock outperform, and 48 members rating it underperform. Among 206 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 196 give FreightCar America a green thumbs-up, and 10 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on FreightCar America is hold, with an average price target of $26.29.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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