Federal Signal (NYSE:FSS) Announces Quarterly Earnings Results

Key Points

• Federal Signal reported a quarterly earnings per share of $1.17, exceeding analysts' estimates by $0.11, with a year-over-year revenue increase of 15.1%.
• The company announced a quarterly dividend of $0.14 per share, which reflects a yield of 0.45% and is scheduled for payment on August 28th.
• Federal Signal has authorized a $150 million stock buyback program, indicative of management’s belief that the stock is currently undervalued.

Federal Signal (NYSE:FSS - Get Free Report) released its quarterly earnings results on Wednesday. The conglomerate reported $1.17 earnings per share for the quarter, beating the consensus estimate of $1.06 by $0.11, Briefing.com reports. The firm had revenue of $564.60 million for the quarter, compared to analysts' expectations of $537.24 million. Federal Signal had a net margin of 11.22% and a return on equity of 18.91%. The business's revenue was up 15.1% on a year-over-year basis. During the same period in the prior year, the firm earned $0.95 EPS. Federal Signal updated its FY 2025 guidance to 3.920-4.100 EPS.

Federal Signal Price Performance

Shares of NYSE FSS traded down $4.09 during midday trading on Friday, reaching $122.48. 1,064,348 shares of the company were exchanged, compared to its average volume of 825,709. The stock's 50-day moving average price is $105.18 and its 200-day moving average price is $92.45. The stock has a market cap of $7.45 billion, a P/E ratio of 34.12, a PEG ratio of 2.55 and a beta of 1.30. Federal Signal has a one year low of $66.47 and a one year high of $128.50. The company has a quick ratio of 1.09, a current ratio of 2.60 and a debt-to-equity ratio of 0.20.

Federal Signal Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, August 28th. Shareholders of record on Friday, August 15th will be paid 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 presently 15.60%.

Federal Signal announced that its board has authorized a share repurchase program 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 shares through open market purchases. Shares buyback programs are typically an indication that the company's board believes its stock is undervalued.

Wall Street Analysts Forecast Growth

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

Institutional Trading of Federal Signal

Hedge funds and other institutional investors have recently modified their holdings of the stock. NewEdge Advisors LLC increased its holdings in Federal Signal by 15.9% in the first quarter. NewEdge Advisors LLC now owns 1,838 shares of the conglomerate's stock valued at $135,000 after purchasing an additional 252 shares during the period. Empowered Funds LLC acquired a new position in Federal Signal during the 1st quarter worth about $1,119,000. AQR Capital Management LLC lifted its holdings in Federal Signal by 10.9% during the 1st quarter. AQR Capital Management LLC now owns 35,702 shares of the conglomerate's stock worth $2,626,000 after buying an additional 3,520 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in Federal Signal by 4.7% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 35,822 shares of the conglomerate's stock worth $2,635,000 after buying an additional 1,594 shares during the period. Finally, Royal Bank of Canada lifted its holdings in Federal Signal by 3.5% during the 1st quarter. Royal Bank of Canada now owns 93,618 shares of the conglomerate's stock worth $6,886,000 after buying an additional 3,153 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.