American Railcar Industries (ARII) Sees Strong Intra-Day Accumulation Following Q1 Results

American Railcar Industries (NASDAQ: ARII) is seeing heavy intra-day accumulation on strong volume following results after the close yesterday. The company reported Q1 EPS of $1.64, $0.35 better than the analyst estimate of $1.29. Revenue for the quarter came in at $263.8 million versus the consensus estimate of $202.1 million.

BB&T Capital analysts Thomas Albrecht noted revenue growth was stimulated by record quarterly deliveries from the Manufacturing segment of 2,668 units (vs. 1,610) and a lower percentage of deliveries to the Lease fleet yr/yr. Also consolidated gross margin improved 50bps yr/yr to 25.7% with Leasing gross margins improving 690bps, Railcar Services gross margins improving 180bps, and Manufacturing falling 180bps. Railcar services revenues broke a 3 quarter string of top line declines.

Volume is more than double the norm and shares are up 6.5%. Despite today's move shares remain down 20% over the last 6-months.

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