American Railcar Industries Earnings: Here’s Why Investors are Happy Now

American Railcar Industries (NASDAQ:ARII) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

American Railcar Industries Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 54.17% to $1.11 in the quarter versus EPS of $0.72 in the year-earlier quarter.

Revenue: Rose 3.37% to $159.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: American Railcar Industries reported adjusted EPS income of $1.11 per share. By that measure, the company beat the mean analyst estimate of $0.92. It missed the average revenue estimate of $182.67 million.

Quoting Management: “We are pleased with a quarter of strong earnings from operations and record operating margins, driven by a favorable sales mix of more tank railcars. The strong tank railcar mix generated operational leverage and efficiencies that were partially offset by lower shipments of hopper railcars. During the quarter, we received orders for 1,850 railcars, resulting in a backlog of 6,940 railcars as of June 30, 2013,” said James Cowan, President and CEO of ARI.

Key Stats (on next page)…

Revenue decreased 18.3% from $195.11 million in the previous quarter. EPS decreased 0% from $1.11 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.97 to a profit $0.96. For the current year, the average estimate has moved down from a profit of $3.66 to a profit of $3.5 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)