• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing
  3. / Transportation

Keeping Fingers Crossed for Fitbit, FreightCar America

The two downtrodden names are set to report second-quarter results after the close.
By JONATHAN HELLER
Aug 02, 2017 | 12:00 PM EDT
Stocks quotes in this article: FIT, RAIL

Today is a big day in value land, as two names near and dear to my heart (but not necessarily my wallet) are scheduled to report after the market's close.

First, Fibit Inc. (FIT) , the down-and-out former growth darling and short-lived cult stock that has seen its shares slide from $48 to $5 in just two short years, will report second-quarter results. Consensus estimates are calling for a loss of 15 cents a share on revenue of $341.5 million. Fitbit posted a mild bottom-line surprise last quarter, with a smaller-than-expected loss of 15 cents a share versus the consensus expectation of an 18.5-cent loss. However, it has not posted a profitable quarter since last October and has been guiding estimates lower as sales suffer.

I'm not sure what to expect here. Even a mild surprise could reinvigorate some investor interest, and expectations are pretty low at this point. Given the train wreck that Fitbit has turned into, the growth crowd has moved on, leaving the bottom-feeding value types such as myself to try and pick up some crumbs, if there are any left.

Currently a double-net (a stock that trades between one and two times net asset value) that is trading at 1.97 times net current asset value, Fitbit ended last quarter with $726 million, or $3.20 per share, in cash and no debt. Despite losses, the company has been cash-flow positive the past two quarters, a trend that can't continue for long if large losses continue to mount. I, for one, likely will bypass the income statement once results are released and head straight for the balance sheet.

Then there is FreightCar America Inc. (RAIL) , a smaller double-net that trades at just 1.26 times net current asset value, which is scheduled to reveal second-quarter results. Operating in a cyclical industry that has been in slowdown mode, the "consensus" (just four analysts here) is calling for a loss of four cents per share on revenue of $107 million. If FreightCar America hits that sales level, it would represent a 15% decline versus the same quarter last year and a 55% decline from the same quarter two years ago.

Somehow, the railcar maker has managed to stay marginally profitable the past three quarters, and we'll get a glimpse today as to whether business is starting to turn around. Talk about a disliked stock: FreightCar America currently has more than half its market cap in cash, carries no debt, trades at 0.85 times tangible book value per share, and yields 2.2%.

It just has not been a great environment for railcars, especially the coal cars produced by the company. Case in point: In 2015, FreightCar America delivered 3,395 coal cars; that number fell to just 43 last year.  But FreightCar AmericaL has lived through quite a few rough environments since its founding in 1901 and seems to have the liquidity to make it through this one.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

At the time of publication, Heller was long FIT and RAIL.

TAGS: Investing | U.S. Equity | Transportation | Consumer | Earnings | Gaming | Stocks

More from Transportation

Lost in Space: Virgin Galactic Continues to Come Down to Earth

Bruce Kamich
Aug 5, 2022 11:47 AM EDT

A trip to Necker Island may be a better investment here.

No, I'm Not Selling Exxon and Chevron Here

Jim Collins
Aug 4, 2022 2:15 PM EDT

Be careful about drawing a comparison with dry bulk shippers and hydrocarbon names. They're two completely different undertakings.

Uber Delivers a Different Kind of Gap

Bruce Kamich
Aug 2, 2022 12:24 PM EDT

Where UBER closes in the range Tuesday is important information.

Here's Why I'm Building a Position in Uber

James "Rev Shark" DePorre
Aug 2, 2022 11:20 AM EDT

I'm encouraged by better stock picking Tuesday.

Tesla Gains Traction as It Drives Out of Earnings Report

Bruce Kamich
Jul 21, 2022 12:16 PM EDT

Here's the next destination for investors, according to the charts.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 02:23 PM EDT STEPHEN GUILFOYLE

    We're Cleaning Out This Retailer From the Bullpen

    Check out the latest moves in TheStreet's Stocks U...
  • 10:24 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    To Improve Your Trading and Investing, Spend More ...
  • 08:44 AM EDT PETER TCHIR

    CPI Beats Expectations, But Maybe Not the 'Whisper'?

    Slightly better-than-expected inflation across the...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login