Freightcar America, Inc. (NASDAQ:RAIL) – Why are FreightCar America shares trading higher today?

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  • FreightCar America, Inc. (NASDAQ: RAIL) reported revenue growth of 23.8% year-on-year to $75.02 million in the fourth quarter, beating consensus of $67 million.
  • The company delivered 604 cars in the fourth quarter compared to 505 cars in the previous quarter and 477 cars in the fourth quarter of 2020.
  • Gross margin for the quarter was 8.8%, down 31 basis points.
  • EPS was $0.06 versus $(0.87) in 4Q20, beating the consensus of ($0.15).
  • Operating profit recovered to $68,000 from a loss of ($9.12) million a year ago.
  • Adjusted EBITDA declined 31.1% year-on-year to $1.2 million, and margin contracted 128 basis points to 1.6%.
  • The quarter-end backlog totaled 2,323 cars with an aggregate value of approximately $240.2 million.
  • Inventories increased to $56 million from $38.8 million at December 31, 2020, reflecting higher production and raw material costs.
  • Total cash at year end was $41.2 million, including cash and cash equivalents of $26.2 million.
  • The company used cash in operating activities of $55.39 million in FY21, compared to $58.91 million a year ago.
  • Outlook for FY22: FreightCar America expects continued strong growth in FY22 with sequential improvement in gross margin.
  • FreightCar America raised its FY22 delivery outlook from 2,350 to 2,650 railcars to 2,600 to 2,900 railcars, from 1,731 deliveries in FY21.
  • The company said it is on track to double its annual railcar production capacity to 4,000 – 5,000 railcars in 2023.
  • RecentlyFreightCar America has promoted Michael A. (Mike) Riordan to Chief Financial Officer effective March 21, 2022.
  • Riordan has served as Corporate Controller and Chief Accounting Officer of the business since November 2020 and replaces Terence Rogers, who will leave after a transition period.
  • Price Action: Shares of RAIL are trading up 15.1% at $5.02 when last checked on Tuesday.
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