Q3 EPS Estimates for Federal Signal Boosted by William Blair

Key Points

• William Blair raised Q3 2025 earnings per share (EPS) estimates for Federal Signal to $1.07, up from a previous estimate of $1.03.
• Federal Signal reported Q2 earnings of $1.17 EPS, surpassing analyst expectations of $1.06, along with a revenue of $564.60 million.
• The company announced a share buyback plan worth $150 million, indicating confidence in its stock valuation.

Federal Signal Corporation (NYSE:FSS - Free Report) - Research analysts at William Blair lifted their Q3 2025 earnings per share estimates for Federal Signal in a report released on Wednesday, July 30th. William Blair analyst R. Sparenblek now expects that the conglomerate will post earnings of $1.07 per share for the quarter, up from their previous forecast of $1.03. The consensus estimate for Federal Signal's current full-year earnings is $3.34 per share. William Blair also issued estimates for Federal Signal's Q4 2025 earnings at $1.00 EPS, FY2025 earnings at $4.00 EPS and FY2026 earnings at $4.75 EPS.

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 (EPS) for the quarter, topping the consensus estimate of $1.06 by $0.11. The firm had revenue of $564.60 million for the quarter, compared to the consensus estimate of $537.24 million. Federal Signal had a return on equity of 18.91% and a net margin of 11.22%. The business's revenue for the quarter was up 15.1% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.95 EPS.

A number of other research firms also recently commented on FSS. KeyCorp restated a "sector weight" rating on shares of Federal Signal in a research note on Friday, July 11th. Wall Street Zen upgraded shares of Federal Signal from a "hold" rating to a "buy" rating in a research note on Saturday. CJS Securities downgraded shares of Federal Signal from a "strong-buy" rating to a "hold" rating and set a $125.00 target price for the company. in a research note on Thursday, July 31st. DA Davidson raised their target price on shares of Federal Signal from $100.00 to $112.00 and gave the company a "neutral" rating in a research note on Thursday, July 31st. Finally, Raymond James Financial raised their target price on shares of Federal Signal from $120.00 to $145.00 and gave the company an "outperform" rating in a research note on Thursday, July 31st. Three analysts have rated the stock with a hold rating and two have assigned a buy rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $123.00.

Federal Signal Trading Up 0.0%

Shares of FSS traded up $0.02 during trading hours on Friday, reaching $124.62. The stock had a trading volume of 262,056 shares, compared to its average volume of 583,030. The company has a market cap of $7.58 billion, a P/E ratio of 34.71, a P/E/G ratio of 2.18 and a beta of 1.30. The company has a quick ratio of 1.25, a current ratio of 2.60 and a debt-to-equity ratio of 0.20. Federal Signal has a 52 week low of $66.47 and a 52 week high of $128.50. The firm has a 50-day moving average of $105.18 and a 200 day moving average of $92.41.

Federal Signal Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, August 28th. Shareholders of record on Friday, August 15th will be issued a $0.14 dividend. This represents a $0.56 annualized dividend and a yield of 0.4%. The ex-dividend date of this dividend is Friday, August 15th. Federal Signal's dividend payout ratio is currently 15.60%.

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

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Bank of New York Mellon Corp boosted its position in shares of Federal Signal by 2.9% during the 2nd quarter. Bank of New York Mellon Corp now owns 481,669 shares of the conglomerate's stock worth $51,259,000 after acquiring an additional 13,767 shares in the last quarter. Bank of Montreal Can grew its stake in shares of Federal Signal by 3.7% during the second quarter. Bank of Montreal Can now owns 45,498 shares of the conglomerate's stock worth $4,842,000 after buying an additional 1,635 shares during the last quarter. Montanaro Asset Management Ltd grew its stake in shares of Federal Signal by 138.6% during the second quarter. Montanaro Asset Management Ltd now owns 43,900 shares of the conglomerate's stock worth $4,672,000 after buying an additional 25,500 shares during the last quarter. Versor Investments LP bought a new stake in shares of Federal Signal during the second quarter worth $1,075,000. Finally, Creative Financial Designs Inc. ADV grew its stake in shares of Federal Signal by 41.2% during the second quarter. Creative Financial Designs Inc. ADV now owns 1,580 shares of the conglomerate's stock worth $168,000 after buying an additional 461 shares during the last quarter. 92.73% of the stock is 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.