As you might know, FreightCar America, Inc. (NASDAQ:RAIL) last week released its latest full-year, and things did not turn out so great for shareholders.      It was a pretty negative result overall, with revenues of US$358m missing analyst predictions by 2.3%. Worse, the business reported a statutory loss of US$1.18 per share, much larger than the analysts had forecast prior to the result.     Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company.  With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

NasdaqGS:RAIL Earnings and Revenue Growth March 21st 2024

After the latest results, the two analysts covering FreightCar America are now predicting revenues of US$499.0m in 2024. If met, this would reflect a major 39% improvement in revenue compared to the last 12 months.      FreightCar America is also expected to turn profitable, with statutory earnings of US$0.10 per share.       In the lead-up to this report, the analysts had been modelling revenues of US$482.3m and earnings per share (EPS) of US$0.20 in 2024.        So it's pretty clear the analysts have mixed opinions on FreightCar America after the latest results; even though they upped their revenue numbers, it came at the cost of a large cut to per-share earnings expectations.    

The consensus price target fell 5.9% to US$4.00, suggesting that the analysts are primarily focused on earnings as the driver of value for this business.      

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates.     It's clear from the latest estimates that FreightCar America's rate of growth is expected to accelerate meaningfully, with the forecast 39% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 10% p.a. over the past five years.    Compare this with other companies in the same industry, which are forecast to grow their revenue 3.4% annually.  Factoring in the forecast acceleration in revenue, it's pretty clear that FreightCar America is expected to grow much faster than its industry.    

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for FreightCar America.        Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry.       Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.  

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider.   At least one analyst has provided forecasts out to 2025, which can be seen for free  on our platform here.

We don't want to rain on the parade too much, but we did also find 2 warning signs for FreightCar America that you need to be mindful 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.