FreightCar America, Inc. Just Recorded A 386% EPS Beat: Here's What Analysts Are Forecasting Next

As you might know, FreightCar America, Inc. (NASDAQ:RAIL) just kicked off its latest quarterly results with some very strong numbers. The company beat forecasts, with revenue of US$119m, some 3.2% above estimates, and statutory earnings per share (EPS) coming in at US$0.34, 386% ahead of expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on FreightCar America after the latest results.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Taking into account the latest results, the most recent consensus for FreightCar America from three analysts is for revenues of US$564.6m in 2025. If met, it would imply a substantial 21% increase on its revenue over the past 12 months. Earnings are expected to improve, with FreightCar America forecast to report a statutory profit of US$1.29 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$564.5m and earnings per share (EPS) of US$1.02 in 2025. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the massive increase in earnings per share expectations following these results.

Check out our latest analysis for FreightCar America

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 7.0% to US$12.67. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic FreightCar America analyst has a price target of US$16.00 per share, while the most pessimistic values it at US$9.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that FreightCar America's rate of growth is expected to accelerate meaningfully, with the forecast 47% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 30% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.7% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that FreightCar America is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around FreightCar America's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for FreightCar America going out to 2027, and you can see them free on our platform here..

You still need to take note of risks, for example - FreightCar America has 2 warning signs (and 1 which is a bit unpleasant) we think you should know about.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.