Wednesday, August 6, 2014

American Railcar Industries Earnings Preview

After rival railcar manufacturer, Greenbrier Companies  reported a strong set of earnings recently, investors in American Railcar Industries  must be wondering if it and Trinity Industries have any upside going into their forthcoming earnings?

Greenbrier beats, American Railcar Industries next?
There are three factors that Fools need to focus on with the earnings of Greenbrier, American Railcar Industries, and Trinity Industries:

  • Railcar order books
  • Demand created by regulatory changes
  • The mix of railcars for sale (more upfront revenue) versus railcars for lease (longer term earnings and cash flow, but less upfront revenue)

The indications are that railcar demand is strong in 2014.


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