FY2026 Earnings Forecast for Federal Signal Issued By Sidoti

Key Points

• Sidoti raised Federal Signal’s FY2026 EPS forecast to $5.26 from $5.22, slightly above the $5.25 consensus estimate; it projects EPS of $5.67 for FY2027 and $6.23 for FY2028.
• Federal Signal reported third-quarter EPS of $1.34, beating estimates by $0.02, while revenue rose 18.1% year over year to $655.5 million but fell short of the $661.6 million consensus.
• The stock carries a “Moderate Buy” consensus rating with an average price target of $140.50, and the company declared a quarterly dividend of $0.15, equal to a 0.5% annualized yield.

Federal Signal Corporation (NYSE:FSS - Free Report) - Equities research analysts at Sidoti raised their FY2026 EPS estimates for Federal Signal in a report issued on Friday, October 30th. Sidoti analyst G. Burns now expects that the conglomerate will earn $5.26 per share for the year, up from their prior forecast of $5.22. The consensus estimate for Federal Signal's current full-year earnings is $5.25 per share. Sidoti also issued estimates for Federal Signal's Q4 2026 earnings at $1.32 EPS, Q1 2027 earnings at $1.27 EPS, Q2 2027 earnings at $1.52 EPS, Q3 2027 earnings at $1.44 EPS, Q4 2027 earnings at $1.43 EPS, FY2027 earnings at $5.67 EPS, Q1 2028 earnings at $1.40 EPS, Q2 2028 earnings at $1.68 EPS, Q3 2028 earnings at $1.58 EPS and FY2028 earnings at $6.23 EPS.

Federal Signal (NYSE:FSS - Get Free Report) last released its earnings results on Thursday, October 29th. The conglomerate reported $1.34 EPS for the quarter, beating the consensus estimate of $1.32 by $0.02. The firm had revenue of $655.50 million during the quarter, compared to analysts' expectations of $661.61 million. Federal Signal had a net margin of 11.65% and a return on equity of 21.31%. The business's quarterly revenue was up 18.1% compared to the same quarter last year. During the same period in the prior year, the company earned $1.14 EPS.

Several other equities analysts also recently weighed in on the stock. Zacks Research downgraded shares of Federal Signal from a "strong-buy" rating to a "hold" rating in a report on Wednesday, August 12th. Citigroup initiated coverage on Federal Signal in a report on Monday, August 17th. They set a "buy" rating and a $150.00 price target on the stock. Weiss Ratings upgraded shares of Federal Signal from a "buy (b-)" rating to a "buy (b)" rating in a research report on Thursday, October 8th. Finally, Wall Street Zen downgraded shares of Federal Signal from a "buy" rating to a "hold" rating in a research report on Saturday, August 1st. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $140.50.

Federal Signal Price Performance

Shares of NYSE FSS opened at $112.34 on Monday. Federal Signal has a 1-year low of $101.18 and a 1-year high of $134.51. The company has a debt-to-equity ratio of 0.27, a current ratio of 2.96 and a quick ratio of 1.35. The company has a market capitalization of $6.85 billion, a price-to-earnings ratio of 23.31, a PEG ratio of 1.34 and a beta of 1.22. The business has a 50-day moving average of $115.33 and a 200-day moving average of $115.71.

Federal Signal Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, December 1st. Shareholders of record on Friday, November 13th will be issued a $0.15 dividend. The ex-dividend date is Friday, November 13th. This represents a $0.60 dividend on an annualized basis and a yield of 0.5%. Federal Signal's payout ratio is currently 12.45%.

Insider Activity

In other news, VP Diane Bonina sold 14,856 shares of the stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $130.44, for a total value of $1,937,816.64. Following the completion of the sale, the vice president directly owned 15,689 shares of the company's stock, valued at approximately $2,046,473.16. This represents a 48.64% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 3.30% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Root Financial Partners LLC bought a new stake in shares of Federal Signal in the 3rd quarter worth about $25,000. Allworth Financial LP bought a new stake in Federal Signal in the second quarter valued at $33,000. Ancora Advisors LLC acquired a new stake in Federal Signal in the 2nd quarter valued at approximately $34,000. Richardson Financial Services Inc. lifted its holdings in Federal Signal by 67.7% during the third quarter. Richardson Financial Services Inc. now owns 265 shares of the conglomerate's stock valued at $29,000 after purchasing an additional 107 shares during the last quarter. Finally, Compass Financial Management LLC bought a new stake in Federal Signal in the second quarter worth $51,000. Institutional investors and hedge funds own 92.73% of the company's stock.

Key Stories Impacting Federal Signal

Here are the key news stories impacting Federal Signal this week:

• Positive Sentiment: Federal Signal reported record third-quarter results, with net sales rising 18% year over year, operating income improving 19%, and orders increasing 33%. The company also cited strong cash generation, supporting continued investment and balance-sheet flexibility. Federal Signal Reports Record Third Quarter Results
• Positive Sentiment: Adjusted earnings were $1.34 per share, topping the $1.32 analyst consensus and increasing from $1.14 a year earlier. Management also raised its full-year adjusted EPS outlook, indicating better-than-expected profitability and cost execution. Federal Signal Surpasses Q3 Earnings Estimates
• Neutral Sentiment: On the earnings call, management discussed the quarter’s operating performance, order momentum, cash generation and updated outlook. The 33% increase in orders provides support for future growth, although conversion into revenue and earnings remains important for investors. Federal Signal Q3 2026 Earnings Call Transcript
• Negative Sentiment: Quarterly revenue of $655.5 million was below the $661.6 million analyst estimate. Despite strong year-over-year growth, the shortfall suggests that demand is not converting into reported sales as quickly as expected. Federal Signal Reports Third-Quarter Earnings
• Negative Sentiment: Federal Signal narrowed its full-year 2026 sales guidance, creating uncertainty around the pace of near-term revenue growth and likely contributing to the stock’s weaker performance despite the EPS beat. Federal Signal Narrows Full-Year Sales Guidance

About Federal Signal

Federal Signal Corporation NYSE: FSS designs and manufactures equipment and systems used by municipalities, government agencies, industrial organizations and commercial customers. Its products support public safety, infrastructure maintenance, environmental protection and emergency response activities.

The company operates through two principal business areas: Environmental Solutions and Safety and Security Systems. Environmental Solutions products include street sweepers, sewer cleaners, vacuum trucks, hydro-excavation equipment, dump bodies and snow and ice control equipment.

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