American Railcar Industries is a leading North American designer and manufacturer of hopper and tank railcar. The company also provides, since 2011, leasing and repair services to customer who include leasing companies, industrial companies and those that use railcars for freight transport, or shippers, and Class I railroads.
American Railcar was founded and incorporated in Missouri in 1988 and has grown from being a small provider of railcar components and maintenance services to one of North America’s leading integrated providers of railcars, railcar components, railcar maintenance services and fleet management services.
Revenues has grown strongly in recent years as companies increasingly transport grain, potash, oil and other products by railroad. The company recently announced another strong quarter of earnings powered by the strong tank railcar market. During the second quarter of 2013, American Railcar shipped approximately 1,310 railcars and reported a backlog of approximately 6,940 railcars including approximately 2,620 railcars for lease customers. Rail car leasing revenues increased by $4.9 million increasing volumes at firm prices and railcar services revenues increased $2.8 million.
Consensus forecasts on Yahoo Finance point to strong earnings growth averaging 15% over the next five years. American Railcar should continue to benefit from a recovering economy as companies ship everything from coal to cars and freight containers packed with imported goods. Priced on 9.8 times historic earnings many investors may choose to climb aboard.
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Risk Disclaimer: This article does not constitute a recommendation to buy or sell. Investing in stocks or other securities and derivatives is a high risk activity and not suitable for everyone. It is strongly recommended that individuals should consult with a SEC registered investment advisor prior to making any investment decisions.
Disclosure: The author holds no positions in the above mentioned stocks
American Railcar was founded and incorporated in Missouri in 1988 and has grown from being a small provider of railcar components and maintenance services to one of North America’s leading integrated providers of railcars, railcar components, railcar maintenance services and fleet management services.
Revenues has grown strongly in recent years as companies increasingly transport grain, potash, oil and other products by railroad. The company recently announced another strong quarter of earnings powered by the strong tank railcar market. During the second quarter of 2013, American Railcar shipped approximately 1,310 railcars and reported a backlog of approximately 6,940 railcars including approximately 2,620 railcars for lease customers. Rail car leasing revenues increased by $4.9 million increasing volumes at firm prices and railcar services revenues increased $2.8 million.
Consensus forecasts on Yahoo Finance point to strong earnings growth averaging 15% over the next five years. American Railcar should continue to benefit from a recovering economy as companies ship everything from coal to cars and freight containers packed with imported goods. Priced on 9.8 times historic earnings many investors may choose to climb aboard.
If you enjoyed this article then please visit www.surgingearnings.com
Risk Disclaimer: This article does not constitute a recommendation to buy or sell. Investing in stocks or other securities and derivatives is a high risk activity and not suitable for everyone. It is strongly recommended that individuals should consult with a SEC registered investment advisor prior to making any investment decisions.
Disclosure: The author holds no positions in the above mentioned stocks
