KeyCorp Weighs in on Federal Signal FY2027 Earnings

Key Points

• KeyCorp raised its FY2027 EPS estimate for Federal Signal to $5.64 (and FY2028 to $6.34), maintaining an Overweight rating with a $130 price target — well above the consensus current full-year estimate of $3.34.
• Federal Signal recently beat quarterly expectations, reporting $1.16 EPS vs. $1.08 expected and revenue of $597.1M vs. $551.4M, with revenue up 26.5% year-over-year and FY2026 guidance set at 4.50–4.80 EPS.
• The company boosted its quarterly dividend to $0.15 (annualized $0.60, yield 0.6%, ex-dividend March 13), while large institutional investors have been adding stakes and the stock has a consensus target of about $131.75 versus a recent price near $108.55.

Federal Signal Corporation (NYSE:FSS - Free Report) - Analysts at KeyCorp issued their FY2027 earnings per share estimates for shares of Federal Signal in a research note issued to investors on Monday, March 9th. KeyCorp analyst S. Barger anticipates that the conglomerate will earn $5.64 per share for the year. KeyCorp currently has a "Overweight" rating and a $130.00 target price on the stock. The consensus estimate for Federal Signal's current full-year earnings is $3.34 per share. KeyCorp also issued estimates for Federal Signal's FY2028 earnings at $6.34 EPS.

Other research analysts also recently issued reports about the stock. Wall Street Zen downgraded shares of Federal Signal from a "buy" rating to a "hold" rating in a research note on Saturday, February 28th. CJS Securities raised shares of Federal Signal from a "market perform" rating to a "market outperform" rating and set a $140.00 price objective for the company in a research note on Thursday, February 26th. Finally, Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Federal Signal in a report on Monday, December 29th. Four equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat, Federal Signal presently has an average rating of "Moderate Buy" and a consensus target price of $131.75.

Federal Signal Stock Up 2.2%

Shares of FSS opened at $108.55 on Wednesday. Federal Signal has a 1 year low of $66.47 and a 1 year high of $132.89. The company has a debt-to-equity ratio of 0.41, a current ratio of 3.02 and a quick ratio of 1.35. The stock has a 50 day simple moving average of $114.60 and a two-hundred day simple moving average of $116.45. The firm has a market cap of $6.61 billion, a P/E ratio of 27.07, a P/E/G ratio of 1.62 and a beta of 1.32.

Federal Signal (NYSE:FSS - Get Free Report) last announced its quarterly earnings data on Wednesday, February 25th. The conglomerate reported $1.16 EPS for the quarter, beating the consensus estimate of $1.08 by $0.08. The firm had revenue of $597.10 million for the quarter, compared to analyst estimates of $551.36 million. Federal Signal had a return on equity of 20.14% and a net margin of 11.31%.The company's revenue was up 26.5% on a year-over-year basis. During the same period in the prior year, the company earned $0.87 EPS. Federal Signal has set its FY 2026 guidance at 4.500-4.800 EPS.

Federal Signal Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, March 26th. Investors of record on Friday, March 13th will be issued a dividend of $0.15 per share. The ex-dividend date is Friday, March 13th. This represents a $0.60 annualized dividend and a yield of 0.6%. This is a boost from Federal Signal's previous quarterly dividend of $0.14. Federal Signal's dividend payout ratio (DPR) is currently 13.97%.

Hedge Funds Weigh In On Federal Signal

A number of large investors have recently bought and sold shares of the stock. Wasatch Advisors LP bought a new stake in Federal Signal in the third quarter valued at approximately $174,476,000. Allianz Asset Management GmbH bought a new position in shares of Federal Signal in the third quarter worth approximately $108,884,000. Norges Bank bought a new position in shares of Federal Signal in the fourth quarter worth approximately $98,257,000. First Trust Advisors LP increased its stake in shares of Federal Signal by 49.6% in the second quarter. First Trust Advisors LP now owns 1,501,431 shares of the conglomerate's stock worth $159,782,000 after buying an additional 497,652 shares during the period. Finally, Invesco Ltd. increased its stake in shares of Federal Signal by 16.0% in the third quarter. Invesco Ltd. now owns 1,967,348 shares of the conglomerate's stock worth $234,095,000 after buying an additional 271,878 shares during the period. 92.73% of the stock is owned by hedge funds and other institutional investors.

About Federal Signal

Federal Signal Corporation NYSE: FSS, headquartered in Oak Brook, Illinois, is a diversified industrial company that designs, manufactures and markets a broad range of products and services for municipal, commercial and industrial customers worldwide. Founded in 1901 in Chicago, the company has grown through a combination of organic investment and strategic acquisitions to become a leading provider of environmental management and safety and security solutions.

Federal Signal operates through two primary business segments.

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