The 10-second takeaway
For the quarter ended March 31 (Q1), FreightCar America crushed expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share grew.
Margins grew across the board.
FreightCar America reported revenue of $219.1 million. The six analysts polled by S&P Capital IQ anticipated sales of $164.8 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $72.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.81. The six earnings estimates compiled by S&P Capital IQ forecast $0.33 per share. GAAP EPS were $0.81 for Q1 against -$0.11 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 10.8%, 770 basis points better than the prior-year quarter. Operating margin was 6.9%, 1,210 basis points better than the prior-year quarter. Net margin was 4.4%, 620 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $168.4 million. On the bottom line, the average EPS estimate is $0.40.
Next year's average estimate for revenue is $667.6 million. The average EPS estimate is $1.83.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 746 members out of 786 rating the stock outperform, and 40 members rating it underperform. Among 211 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 205 give FreightCar America a green thumbs-up, and six 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 $27.69.
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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. 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.