FreightCar America shares leap after 3Q beats view

CHICAGO - Shares of railcar manufacturer FreightCar America Inc. soared Thursday after it reported third-quarter earnings well above Wall Street's expectations, mostly due to cost cuts.

The company earned $7.4 million, or 62 cents per share, down 15 percent from $8.7 million, or 73 cents per share, in the year-ago quarter.

Revenue jumped 47 percent to $238 million, from $162.1 million a year earlier.

Analysts were expecting a profit of 15 cents per share on revenue of $173.4 million, according to a poll by Thomson Reuters.

The company attributed the results to cost reduction efforts as well as diversification strategies. FreightCar offered new railcar products during the quarter, and expanded into the aftermarket services business for coal cars.

Shares of FreightCar gained $2.99, or 14.3 percent, to $24.58 in morning trading. The stock has traded between $17.69 and $45.32 in the past year.

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