Federal Signal (NYSE:FSS) Releases Earnings Results, Beats Expectations By $0.11 EPS

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

Federal Signal Price Performance

NYSE FSS traded down $4.09 during trading hours on Friday, reaching $122.48. The company's stock had a trading volume of 1,064,348 shares, compared to its average volume of 825,709. The firm has a market capitalization of $7.47 billion, a price-to-earnings ratio of 34.12, a P/E/G ratio of 2.63 and a beta of 1.27. The company's 50-day moving average is $105.18 and its two-hundred day moving average is $92.47. The company has a debt-to-equity ratio of 0.20, a current ratio of 2.60 and a quick ratio of 1.09. Federal Signal has a 1-year low of $66.47 and a 1-year high of $128.50.

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 dividend of $0.14 per share. The ex-dividend date is Friday, August 15th. This represents a $0.56 dividend on an annualized basis and a dividend yield of 0.5%. Federal Signal's dividend payout ratio (DPR) is 15.60%.

Institutional Trading of Federal Signal

Several institutional investors have recently bought and sold shares of the business. NewEdge Advisors LLC lifted its position in shares of Federal Signal by 15.9% during the 1st quarter. NewEdge Advisors LLC now owns 1,838 shares of the conglomerate's stock valued at $135,000 after buying an additional 252 shares in the last quarter. Empowered Funds LLC purchased a new position in Federal Signal during the first quarter valued at $1,119,000. AQR Capital Management LLC raised its position in shares of 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 purchasing an additional 3,520 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in Federal Signal by 4.7% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 35,822 shares of the conglomerate's stock valued at $2,635,000 after buying an additional 1,594 shares in the last quarter. Finally, Royal Bank of Canada lifted its stake in Federal Signal by 3.5% in the 1st quarter. Royal Bank of Canada now owns 93,618 shares of the conglomerate's stock valued at $6,886,000 after buying an additional 3,153 shares in the last quarter. 92.73% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on FSS. CJS Securities restated a "market perform" rating and set a $125.00 price objective on shares of Federal Signal in a research note on Thursday. Raymond James Financial raised their price objective on Federal Signal from $120.00 to $145.00 and gave the stock an "outperform" rating in a research report on Thursday. Wall Street Zen upgraded shares of Federal Signal from a "hold" rating to a "buy" rating in a research note on Saturday. DA Davidson raised their price objective on Federal Signal from $100.00 to $112.00 and gave the stock a "neutral" rating in a research note on Thursday. Finally, KeyCorp reaffirmed a "sector weight" rating on shares of Federal Signal in a report on Friday, July 11th. Three 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 price target of $123.00.

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

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.