- B. Riley analyst Alex Rygiel lowered the price target on railroad equipment company L B Foster Co (NASDAQ:FSTR) to $18 (an upside of 18%) from $21 and maintained a Buy rating on the shares.
- Rygiel noted the company's Q4 results were below his estimates, reflecting lower Rail Tech/Services revenue and higher input and labor costs.
- Meanwhile, the analyst thinks the company will benefit from growth markets and improve margins in 2022 and beyond.
- Recently, L B Foster reported a fourth-quarter net sales decline of 2.3% year-over-year to $113 million, missing the consensus of $132.48 million.
- The gross profit margin was 16.9%, a reduction of 190 bps from the prior-year quarter.
- EPS loss was $(0.03) versus $0.24 a year ago.
- New orders for the year ended December 31, 2021, were $508.2 million, a 4.% decline from the prior year. Backlog, adjusted for the divestiture of the Piling business, decreased by 2.8% Y/Y.
- Price Action: FSTR shares are trading lower by 4.58% at $15.20 on the last check Thursday.
