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FrieghtCar America Inc. (RAIL) stock soared in the pre-market trading session: here’s why

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FreightCar America Inc. (RAIL) stock recently traded at $4.86 which is a 0.21% upward movement. The stock previously closed at $4.85. However, in the pre-market trading session, RAIL stock soared by 8.44% at the time of writing.

The pattern of positive movement of RAIL stock in the recent pre-market trading session comes with no sort of recent news or Company press release. However, FrieghtCar (RAIL) did release its Q4 and FY 2020 report on 24th March 2021 which had overall positive fundamentals for the company in 2020.

How does FreightCar America (RAIL) operate its business?

FreightCar America Inc. is a railroads company specifically focused on manufacturing railroad freight cars. FrieghtCar has diversified its portfolio in the rail-industry market by also producing and supplying railcar parts which also includes specialization in the conversion of old railcars for repurposed uses.FreightCar (RAIL) manufactures topline railcars that include a series of hopper cars and build intermodal and non-intermodal cars. Coal cars, box cars, and mil gondola cars are also part of its multiple asset portfolios. RAIL stock has a subsidiary by the name of FrieghtCar American Leasing Company which provides leases for freight cars.

How RAIL stock uplifted itself during the Pandemic?

The investors gained confidence in the RAIL stock on 24th March 2021, when FreightCar released its financial report on fourth quarter and full year report 2020. Despite the pandemic forcing businesses to go through their potentially toughest financial year in 2020, FreightCar’s2021 guidance looks positive even though it took some losses. The rail company went through a restructuring-stage and is now finally in growth stage. FreightCar moved their manufacturing operations from Alabama to Castanos and in North America, where it has the newest purpose-built railcare manufacturing facility. This facility became operational in the fourth quarter of 2020.

FreightCar America Inc.’s (RAIL) Q4 and Full Year Report

 

Here are the Fourth Quarter and Full Year Highlights

  • The consolidated revenues forQ4 2020 were $60.6 million compared to $44.9 million in Q4 2019
  • The consolidated loss for Q4 2020 was $9.2 million compared to $9.0 million in Q4 2019
  • Net loss for the RAIL stock attributed to $14.4 million or $0.87 per share in Q4 2020. In Q4 2019 it was $9.5 million or $.75 per share.
  • The consolidated revenues for 2020 FY were $108.4 million while it was $230 million for 2019 FY.
  • 751 Railcars were delivered in 2020 while 2,276 railcars were delivered in 2019.
  • The consolidated operating loss for 2020 was $80.6 million while for 2019 it was $75.6 million.
  • Inventories in 2020 were totaled at $38.8 million compared to $25.1 million in 2019
  • Cash equivalents, restricted cash equivalents and marketable securities equals to $54.2 million at the year ending 2020, while $70 million at the year ending 2019.

 

Outlook projection for FreightCar America Inc (RAIL)

The expansion into Mexico is positive news for the RAIL stock. The facility has the capacity to produce 2,000 railcars per year. Castanos facility also has gotten approval for the inclusion of large fabrication shop along with additional wheel and axle capacity.

The most significant aspect of the financial report in terms of future outlook is the provision of delivery guidance for 2021 by FreightCar. RAIL stock estimates that it will have 1400 to 1600 railcars in 2021. The CEO of FreightCar America Inc. Jim Meyer projects that their total deliveries will be a double in 2021.

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