Analysts Set Expectations for Federal Signal Q3 Earnings

Key Points

• DA Davidson estimates Federal Signal's Q3 2025 earnings per share at $1.05, with the full-year consensus for 2023 at $3.34 EPS.
• The company recently reported a 15.1% increase in revenue year-over-year, earning $1.17 EPS for the last quarter, surpassing estimates.
• Federal Signal has approved a $150 million share buyback program, indicating that its board believes the stock may be undervalued.

Federal Signal Corporation (NYSE:FSS - Free Report) - Equities researchers at DA Davidson issued their Q3 2025 earnings estimates for shares of Federal Signal in a research note issued to investors on Thursday, July 31st. DA Davidson analyst M. Shlisky anticipates that the conglomerate will post earnings per share of $1.05 for the quarter. DA Davidson currently has a "Neutral" rating and a $112.00 target price on the stock. The consensus estimate for Federal Signal's current full-year earnings is $3.34 per share. DA Davidson also issued estimates for Federal Signal's FY2025 earnings at $3.97 EPS and FY2026 earnings at $4.37 EPS.

Other equities analysts have also issued reports about the stock. Wall Street Zen raised shares of Federal Signal from a "hold" rating to a "buy" rating in a report on Saturday. Raymond James Financial lifted their target price on shares of Federal Signal from $120.00 to $145.00 and gave the company an "outperform" rating in a report on Thursday, July 31st. CJS Securities lowered shares of Federal Signal from a "strong-buy" rating to a "hold" rating and set a $125.00 target price for the company. in a report on Thursday, July 31st. Finally, KeyCorp reissued a "sector weight" rating on shares of Federal Signal in a report on Friday, July 11th. Three investment analysts have rated the stock with a hold rating and two have given a buy rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $123.00.

Federal Signal Stock Performance

NYSE FSS traded up $0.02 on Friday, hitting $124.62. 262,056 shares of the company's stock traded hands, compared to its average volume of 583,030. The company has a current ratio of 2.60, a quick ratio of 1.25 and a debt-to-equity ratio of 0.20. Federal Signal has a 1-year low of $66.47 and a 1-year high of $128.50. The firm's 50-day moving average price is $105.18 and its two-hundred day moving average price is $92.41. The firm has a market capitalization of $7.58 billion, a PE ratio of 34.71, a P/E/G ratio of 2.18 and a beta of 1.30.

Federal Signal (NYSE:FSS - Get Free Report) last announced its quarterly earnings data on Wednesday, July 30th. The conglomerate reported $1.17 EPS for the quarter, beating the consensus estimate of $1.06 by $0.11. Federal Signal had a net margin of 11.22% and a return on equity of 18.91%. The business had revenue of $564.60 million during the quarter, compared to analysts' expectations of $537.24 million. During the same period in the previous year, the business posted $0.95 EPS. The business's quarterly revenue was up 15.1% compared to the same quarter last year.

Hedge Funds Weigh In On Federal Signal

Institutional investors and hedge funds have recently bought and sold shares of the business. Physician Wealth Advisors Inc. lifted its position in shares of Federal Signal by 47.0% during the second quarter. Physician Wealth Advisors Inc. now owns 291 shares of the conglomerate's stock worth $31,000 after purchasing an additional 93 shares in the last quarter. Maryland State Retirement & Pension System grew its position in Federal Signal by 0.6% in the 2nd quarter. Maryland State Retirement & Pension System now owns 17,918 shares of the conglomerate's stock valued at $1,907,000 after buying an additional 106 shares during the last quarter. Nisa Investment Advisors LLC boosted its position in shares of Federal Signal by 5.1% during the 2nd quarter. Nisa Investment Advisors LLC now owns 2,339 shares of the conglomerate's stock worth $249,000 after purchasing an additional 113 shares in the last quarter. CoreCap Advisors LLC raised its stake in shares of Federal Signal by 19.9% during the 4th quarter. CoreCap Advisors LLC now owns 875 shares of the conglomerate's stock worth $81,000 after buying an additional 145 shares during the last quarter. Finally, Creative Financial Designs Inc. ADV raised its stake in Federal Signal by 16.9% in the 1st quarter. Creative Financial Designs Inc. ADV now owns 1,119 shares of the conglomerate's stock valued at $82,000 after purchasing an additional 162 shares during the last quarter. 92.73% of the stock is currently owned by institutional investors and hedge funds.

Federal Signal Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, August 28th. Stockholders of record on Friday, August 15th will be given a $0.14 dividend. This represents a $0.56 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date is Friday, August 15th. Federal Signal's dividend payout ratio is 15.60%.

Federal Signal announced that its Board of Directors has initiated a share buyback program on Tuesday, April 22nd that permits the company to buyback $150.00 million in shares. This buyback authorization permits the conglomerate to buy up to 3.3% of its stock through open market purchases. Stock buyback programs are generally a sign that the company's board believes its shares are undervalued.

About Federal Signal

Federal Signal Corp. engages in the design and manufacture of products and integrated solutions for municipal, governmental, industrial, and commercial customers. It operates through the Environmental Solutions Group and Safety and Security Systems Group segments. The Environment Solutions Group segment is involved in the manufacture and supply of street sweeper vehicles, sewer cleaners, vacuum loader trucks, hydro-excavation trucks, and water blasting equipment.