NEW YORK (AP) -- Shares of FreightCar America Inc. jumped Monday as Wall Street took a second look at the rail car maker's second-quarter results.
THE SPARK: Sterne Agee analyst Sal Vitale said FreightCar's earnings and sales fell far short of Wall Street expectations, but said he believes the company will make up for some deliveries during the third quarter.
Vitale kept a "Buy" rating on FreightCar stock with a price target of $24. The analyst said he thinks orders for replacement coal cars are starting to pick up.
THE BIG PICTURE: FreightCar reported its second-quarter results before the market opened Friday. The Chicago company said it took a loss of 29 cents per share and its revenue fell 74 percent to $47.1 million on a steep drop in deliveries. The company said it delivered 710 cars and took 693 orders during the quarter
Analysts were expecting a smaller loss of 10 cents per share on $89.4 million in revenue, according to FactSet.
However, FreightCar America said it has received orders for around 5,500 coal and noncoal cars since the end of the second quarter.
SHARE ACTION: FreightCar shares picked up $1.69, or 9.3 percent, to $19.79 in afternoon trading. The shares rose 8 cents Friday, and they have recovered in the last few weeks after touching an annual low of $16.53 on July 17.