Federal Signal (NYSE:FSS) Releases FY 2025 Earnings Guidance

Key Points

• Federal Signal has updated its FY 2025 earnings guidance, projecting earnings per share in the range of $3.920 to $4.100, exceeding the consensus estimate of $3.820.
• The company's revenue guidance remains stable at $2.1 billion, matching the consensus revenue estimate.
• Federal Signal also announced a quarterly dividend of $0.14 per share, reflecting an annualized dividend of $0.56 and a yield of 0.53%.

Federal Signal (NYSE:FSS - Get Free Report) updated its FY 2025 earnings guidance on Wednesday. The company provided earnings per share guidance of 3.920-4.100 for the period, compared to the consensus earnings per share estimate of 3.820. The company issued revenue guidance of $2.1 billion-$2.1 billion, compared to the consensus revenue estimate of $2.1 billion.

Analysts Set New Price Targets

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

Federal Signal Stock Down 3.2%

Shares of FSS traded down $4.09 on Friday, reaching $122.48. The stock had a trading volume of 1,064,348 shares, compared to its average volume of 878,928. The company has a debt-to-equity ratio of 0.20, a quick ratio of 1.25 and a current ratio of 2.60. The firm has a market capitalization of $7.45 billion, a price-to-earnings ratio of 34.12, a price-to-earnings-growth ratio of 2.18 and a beta of 1.30. The company has a 50-day simple moving average of $105.18 and a 200-day simple moving average of $92.41. Federal Signal has a 12-month low of $66.47 and a 12-month high of $128.50.

Federal Signal (NYSE:FSS - Get Free Report) last posted its quarterly earnings data on Wednesday, July 30th. The conglomerate reported $1.17 earnings per share for the quarter, beating analysts' consensus estimates of $1.06 by $0.11. Federal Signal had a return on equity of 18.91% and a net margin of 11.22%. The company had revenue of $564.60 million during the quarter, compared to analyst estimates of $537.24 million. During the same quarter last year, the company earned $0.95 EPS. The firm's revenue for the quarter was up 15.1% on a year-over-year basis. Sell-side analysts predict that Federal Signal will post 3.34 EPS for the current year.

Federal Signal Announces Dividend

The firm also recently disclosed 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 annualized dividend and a yield of 0.5%. The ex-dividend date is Friday, August 15th. Federal Signal's dividend payout ratio (DPR) is presently 15.60%.

Federal Signal declared that its board has initiated a stock 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 reacquire up to 3.3% of its stock through open market purchases. Stock buyback plans are often a sign that the company's board believes its shares are undervalued.

Institutional Trading of Federal Signal

A number of large investors have recently made changes to their positions in the stock. NewEdge Advisors LLC boosted its holdings in shares of Federal Signal by 15.9% in the first quarter. NewEdge Advisors LLC now owns 1,838 shares of the conglomerate's stock worth $135,000 after buying an additional 252 shares during the last quarter. Empowered Funds LLC purchased a new position in shares of Federal Signal during the 1st quarter worth $1,119,000. AQR Capital Management LLC grew 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 valued at $2,626,000 after acquiring an additional 3,520 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in shares of 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 worth $2,635,000 after purchasing an additional 1,594 shares in the last quarter. Finally, Royal Bank of Canada raised its holdings in Federal Signal by 3.5% in the 1st quarter. Royal Bank of Canada now owns 93,618 shares of the conglomerate's stock worth $6,886,000 after purchasing an additional 3,153 shares during the period. 92.73% of the stock is currently owned by institutional investors.

About Federal Signal

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.