Results: FreightCar America, Inc. Exceeded Expectations And The Consensus Has Updated Its Estimates

FreightCar America, Inc. (NASDAQ:RAIL) investors will be delighted, with the company turning in some strong numbers with its latest results. It was a solid earnings report, with revenues and statutory earnings per share (EPS) both coming in strong. Revenues were 16% higher than the analyst had forecast, at US$147m, while EPS were US$0.11 beating analyst models by 120%. The analyst 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. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.

See our latest analysis for FreightCar America

After the latest results, the solitary analyst covering FreightCar America are now predicting revenues of US$589.8m in 2024. If met, this would reflect a meaningful 19% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 81% to US$0.20. Before this latest report, the consensus had been expecting revenues of US$550.6m and US$0.30 per share in losses. So it seems there's been a definite increase in optimism about FreightCar America's future following the latest consensus numbers, with a considerable decrease in the loss per share forecasts in particular.

It will come as no surprise to learn thatthe analyst has increased their price target for FreightCar America 11% to US$5.00on the back of these upgrades.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that FreightCar America's rate of growth is expected to accelerate meaningfully, with the forecast 41% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 21% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 3.2% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect FreightCar America to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analyst reconfirmed their loss per share estimates for next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was also a nice increase in the price target, with the analyst 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. We have analyst estimates for FreightCar America going out as far as 2025, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for FreightCar America that you should be aware of.

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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.