RAIL Post Below Expectations Q4 EPS, Margin Pressure Increases
Analysts at KeyBanc Capital Markets maintain their "hold" rating on FreightCar America Inc (NASDAQ: RAIL), while reducing their estimates for the company.
According to KeyBanc Capital Markets, FreightCar America has reported its Q4 EPS short of the expectations, mainly due to onetime expenses. “We believe the weaker than expected quarter is indicative of competitive new railcar pricing, limited demand for coal cars in the near term, and the significant level of operating leverage in RAIL's model,” the analysts say.
“On the positive front, RAIL maintains a solid liquidity position, which implies a lack of financial risk despite challenging end markets,” the analysts mention. KeyBanc Capital Markets has reduced its EPS estimate for 2010 from -$0.38 to -$0.68.
