FreightCar America Inc. (NASDAQ: RAIL) stock gained by 12.06% at last close contrary to which the RAIL stock price has been seen declining by 1.99% in the after-hours trading session given no recent update available. FreightCar America deals with railroad freight car manufacturing and also provides railcar components and rents freight cars through its FreightCar America Leasing Company subsidiary.
Recent Past Development
Q1 Financial Results
FreightCar America has announced its first-quarter 2021 financial results on May 17, 2021. Given below is the summary:
- For the first quarter of 2021, consolidated revenues were $32.4 million, relative to $60.6 million in the fourth quarter of 2020 and $5.2 million in the first quarter of 2020. In the first quarter of 2021, RAIL has delivered 309 railcars, compared to 477 railcars in the fourth quarter of 2020 and 11 railcars in the first quarter of 2020.
- The first quarter of 2021 had a combined operating loss of $14.0 million, relative to a loss of $9.2 million in the fourth quarter of 2020 and a loss of $17.1 million in Q1 2020.
- The Q1 of 2021 had a net loss of $38.4 million, or $1.92 per share, relative to $14.6 million, or $0.87 per share, in the Q4 of 2020 and $17.2 million, or $1.29 per share, in the Q1 of 2020.
- For the first quarter of 2021, the adjusted EBITDA loss was $1.3 million. The fourth quarter of 2020 had a positive Adjusted EBITDA of $1.7 million, while the first quarter had an Adjusted EBITDA loss of $12.9 million.
Jim Meyer, President, and CEO of FreightCar America stated:
FreightCar America is already reaping the advantages of relocating their manufacturing operations to Castaos, as evidenced by increased year-over-year results and a second quarter of good gross margin. RAIL is also seeing signs of increased momentum throughout the end markets they serve. The RAIL management believes that this momentum will carry over to FreightCar’s business, with sales enquiries and new order activity exceeding their expectations. As a result, they’ve increased their 2021 delivery forecast to between 1,600 and 1,750 railcars, up from their previous estimate of 1,400 to 1,600 railcars. RAIL is ecstatic with what they’ve done at FreightCar in the last 6–12 months, and they believe the leverage they’ve gained from their recent operations and cost structure will help them thrive in a strengthening market.