L.B. Foster's Earnings Surpass Estimates, Revenues Miss in Q3

Core Viewpoint - L.B. Foster Company reported significant earnings growth in Q3 2024, with adjusted earnings surpassing expectations despite a decline in revenues and new orders. Financial Performance - The company logged Q3 2024 earnings of $3.27 per share, a substantial increase from 5 cents per share in the same quarter last year. Adjusted earnings were 54 cents per share, exceeding the Zacks Consensus Estimate of 49 cents [1] - Revenues for the quarter were $137.5 million, down approximately 5% year over year, and missed the Zacks Consensus Estimate of $144.6 million [2] - New orders totaled $96 million, reflecting a decrease of around 4% year over year [3] Segment Performance - Sales from the Rail, Technologies, and Services segment fell 8.5% year over year to $79.5 million, primarily due to a decline in Rail Products, which offset gains in Global Friction Management and Technology Services and Solutions [4] - The Infrastructure Solutions segment reported sales of $58 million, down roughly 1% year over year, impacted by the exit of the bridge grid deck product line [4] Financial Position - The company ended the quarter with cash and cash equivalents of approximately $3.1 million, a decrease of around 22% sequentially. Long-term debt was about $68.4 million, down roughly 21% from the prior quarter [5] - Cash provided by operating activities was $24.7 million for the quarter [5] Outlook - L.B. Foster expects adjusted EBITDA in the range of $34.5-$36.5 million for 2024 and net sales between $530-$540 million [6] Stock Performance - L.B. Foster's shares have increased by 17.4% over the past year, contrasting with a 5.8% decline in the industry [7]