Seaport Res Ptn Lifts Earnings Estimates for Federal Signal

Key Points

• Analysts at Seaport Res Ptn have increased their Q3 2025 earnings per share (EPS) estimate for Federal Signal to $1.07, up from the previous forecast of $1.05.
• Federal Signal reported $1.17 EPS for Q2, surpassing expectations of $1.06, and achieved a revenue of $564.60 million, which was above the projected $537.24 million.
• The company has initiated a $150 million share buyback plan, indicating confidence in the stock's current valuation, coupled with a declared quarterly dividend of $0.14 per share.

Federal Signal Corporation (NYSE:FSS - Free Report) - Equities researchers at Seaport Res Ptn raised their Q3 2025 EPS estimates for shares of Federal Signal in a research report issued on Thursday, July 31st. Seaport Res Ptn analyst W. Liptak now anticipates that the conglomerate will post earnings per share of $1.07 for the quarter, up from their prior forecast of $1.05. The consensus estimate for Federal Signal's current full-year earnings is $3.34 per share. Seaport Res Ptn also issued estimates for Federal Signal's Q4 2025 earnings at $1.05 EPS, FY2025 earnings at $4.04 EPS, Q2 2026 earnings at $1.30 EPS, Q4 2026 earnings at $1.18 EPS and FY2026 earnings at $4.53 EPS.

Several other research analysts have also weighed in on FSS. Wall Street Zen raised shares of Federal Signal from a "hold" rating to a "buy" rating in a report on Saturday, August 2nd. CJS Securities restated a "market perform" rating and set a $125.00 price target on shares of Federal Signal in a research report on Thursday, July 31st. DA Davidson increased their price objective on Federal Signal from $100.00 to $112.00 and gave the stock a "neutral" rating in a report on Thursday, July 31st. KeyCorp reissued a "sector weight" rating on shares of Federal Signal in a research note on Friday, July 11th. Finally, Raymond James Financial boosted their price objective on Federal Signal from $120.00 to $145.00 and gave the stock an "outperform" rating in a research note on Thursday, July 31st. Three investment analysts have rated the stock with a hold rating and two have issued a buy rating to the stock. According to data from MarketBeat.com, Federal Signal has a consensus rating of "Hold" and a consensus price target of $123.00.

Federal Signal Stock Performance

Shares of FSS stock traded down $0.29 during trading hours on Monday, reaching $125.07. 392,671 shares of the company's stock were exchanged, compared to its average volume of 587,566. The company has a debt-to-equity ratio of 0.20, a current ratio of 2.60 and a quick ratio of 1.25. The company has a market cap of $7.60 billion, a P/E ratio of 34.92, a price-to-earnings-growth ratio of 2.23 and a beta of 1.30. Federal Signal has a 1 year low of $66.47 and a 1 year high of $128.50. The company's 50 day moving average is $107.05 and its two-hundred day moving average is $93.06.

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

Federal Signal declared that its Board of Directors has authorized a share repurchase program on Tuesday, April 22nd that permits the company to repurchase $150.00 million in shares. This repurchase authorization permits the conglomerate to repurchase up to 3.3% of its stock through open market purchases. Stock repurchase programs are often an indication that the company's leadership believes its shares are undervalued.

Federal Signal Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, August 28th. Investors of record on Friday, August 15th will be issued 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 of this dividend is Friday, August 15th. Federal Signal's payout ratio is 15.60%.

Institutional Investors Weigh In On Federal Signal

Hedge funds and other institutional investors have recently bought and sold shares of the business. Opal Wealth Advisors LLC bought a new position in shares of Federal Signal during the 1st quarter valued at about $29,000. Bessemer Group Inc. lifted its position in Federal Signal by 78.4% in the first quarter. Bessemer Group Inc. now owns 421 shares of the conglomerate's stock valued at $31,000 after purchasing an additional 185 shares during the last quarter. Physician Wealth Advisors Inc. grew its holdings in shares of Federal Signal by 47.0% in 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 during the last quarter. Harbor Investment Advisory LLC raised its holdings in Federal Signal by 201.8% during the 1st quarter. Harbor Investment Advisory LLC now owns 658 shares of the conglomerate's stock valued at $48,000 after buying an additional 440 shares during the last quarter. Finally, Signaturefd LLC grew its holdings in Federal Signal by 46.3% in the 2nd quarter. Signaturefd LLC now owns 660 shares of the conglomerate's stock worth $70,000 after acquiring an additional 209 shares during the last quarter. Institutional investors own 92.73% of the company's stock.

Federal Signal Company Profile

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.