Brokers Issue Forecasts for Federal Signal Q3 Earnings

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) - Analysts at Seaport Res Ptn upped their Q3 2025 EPS estimates for Federal Signal in a research note 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.

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

FSS has been the topic of a number of other research reports. KeyCorp reissued a "sector weight" rating on shares of Federal Signal in a report on Friday, July 11th. Raymond James Financial raised their target price on shares of Federal Signal from $120.00 to $145.00 and gave the stock an "outperform" rating in a report on Thursday. CJS Securities reissued a "market perform" rating and issued a $125.00 target price on shares of Federal Signal in a report on Thursday. DA Davidson lifted their price target on Federal Signal from $100.00 to $112.00 and gave the company a "neutral" rating in a report on Thursday. Finally, Wall Street Zen raised Federal Signal from a "hold" rating to a "buy" rating in a report on Saturday. Three research analysts have rated the stock with a hold rating and two have issued a buy rating to the stock. According to MarketBeat, Federal Signal has a consensus rating of "Hold" and a consensus target price of $123.00.

Federal Signal Stock Performance

Shares of NYSE FSS opened at $122.48 on Monday. The company has a quick ratio of 1.25, a current ratio of 2.60 and a debt-to-equity ratio of 0.20. The firm's 50-day moving average price is $105.18 and its two-hundred day moving average price is $92.41. Federal Signal has a 52-week low of $66.47 and a 52-week high of $128.50. The stock has a market capitalization of $7.45 billion, a P/E ratio of 34.12, a P/E/G ratio of 2.18 and a beta of 1.30.

Federal Signal declared that its board has approved a share buyback plan on Tuesday, April 22nd that authorizes the company to buyback $150.00 million in outstanding shares. This buyback authorization authorizes the conglomerate to buy up to 3.3% of its stock through open market purchases. Stock buyback plans are typically a sign that the company's board of directors believes its shares are undervalued.

Federal Signal Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, August 28th. Stockholders of record on Friday, August 15th will be issued a dividend of $0.14 per share. This represents a $0.56 dividend on an annualized basis and a dividend yield of 0.5%. 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 have recently made changes to their positions in the business. GSA Capital Partners LLP bought a new stake in shares of Federal Signal during the first quarter valued at approximately $876,000. California Public Employees Retirement System increased its stake in shares of Federal Signal by 0.6% during the fourth quarter. California Public Employees Retirement System now owns 89,654 shares of the conglomerate's stock valued at $8,283,000 after acquiring an additional 514 shares during the period. Oppenheimer Asset Management Inc. increased its stake in shares of Federal Signal by 21.1% during the first quarter. Oppenheimer Asset Management Inc. now owns 15,641 shares of the conglomerate's stock valued at $1,150,000 after acquiring an additional 2,724 shares during the period. Bessemer Group Inc. increased its stake in shares of Federal Signal by 78.4% during the first quarter. Bessemer Group Inc. now owns 421 shares of the conglomerate's stock valued at $31,000 after acquiring an additional 185 shares during the period. Finally, Wealth Enhancement Advisory Services LLC increased its stake in shares of Federal Signal by 66.1% during the first quarter. Wealth Enhancement Advisory Services LLC now owns 11,067 shares of the conglomerate's stock valued at $814,000 after acquiring an additional 4,405 shares during the period. 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.