Benzinga | Mar 23, 2021 10:06AM EDT

Earnings Outlook for FreightCar America



FreightCar America (NASDAQ:RAIL) announces its next round of earnings this Wednesday, March 24. Here is Benzinga's look at FreightCar America's Q4 earnings report.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Analysts covering FreightCar America have modeled for quarterly EPS loss of $0.67 on revenue of $51.20 million. FreightCar America reported a loss of $0.75 when it published results during the same quarter last year. Sales in that period totaled $44.94 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to post earnings in line with the consensus estimate when it reports Wednesday, EPS would be up 10.67%. Revenue would be up 13.93% from the year-ago period. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate -0.75 -0.79 -0.81 -0.59EPS Actual -0.82 -0.97 -1.29 -0.75Revenue Estimate 39.85 M 29.80 M 28.50 M 45.40 MRevenue Actual 25.20 M 17.46 M 5.20 M 44.94 M

Stock Performance

Over the last 52-week period, shares are up 364.78%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. FreightCar America is scheduled to hold the call at 11:00:00 ET and can be accessed here.