Q3 EPS Estimates for Federal Signal Raised 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) - Equities research analysts at William Blair increased their Q3 2025 EPS estimates for Federal Signal in a research report issued on Wednesday, July 30th. William Blair analyst R. Sparenblek now expects that the conglomerate will earn $1.07 per share for the quarter, up from their prior estimate 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.

Several other equities analysts have also weighed in on the stock. Raymond James Financial increased their price objective 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 research report 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 report on Thursday. 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 research note on Thursday. Finally, KeyCorp restated a "sector weight" rating on shares of Federal Signal in a research note on Friday, July 11th. Three analysts have rated the stock with a hold rating and two have given a buy rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $123.00.

Federal Signal Price Performance

Shares of FSS stock traded up $1.86 during trading hours on Friday, reaching $124.43. 473,482 shares of the company were exchanged, compared to its average volume of 585,424. The stock's fifty day moving average is $105.18 and its two-hundred day moving average is $92.41. Federal Signal has a fifty-two week low of $66.47 and a fifty-two week high of $128.50. The company has a market cap of $7.56 billion, a price-to-earnings ratio of 34.66, a P/E/G ratio of 2.18 and a beta of 1.30. The company has a debt-to-equity ratio of 0.20, a current ratio of 2.60 and a quick ratio of 1.25.

Federal Signal (NYSE:FSS - Get Free Report) last announced its earnings results on Wednesday, July 30th. The conglomerate reported $1.17 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.06 by $0.11. Federal Signal had a net margin of 11.22% and a return on equity of 18.91%. The company had revenue of $564.60 million for the quarter, compared to analyst estimates of $537.24 million. During the same period in the prior year, the business earned $0.95 earnings per share. Federal Signal's quarterly revenue was up 15.1% on a year-over-year basis.

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

Federal Signal Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, August 28th. Investors 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 annualized dividend and a dividend yield of 0.5%. Federal Signal's dividend payout ratio (DPR) is currently 15.60%.

Institutional Trading of Federal Signal

Several large investors have recently made changes to their positions in FSS. Creative Financial Designs Inc. ADV increased its stake in shares of Federal Signal by 41.2% in the 2nd quarter. Creative Financial Designs Inc. ADV now owns 1,580 shares of the conglomerate's stock valued at $168,000 after purchasing an additional 461 shares during the last quarter. BLB&B Advisors LLC bought a new stake in shares of Federal Signal during the 2nd quarter valued at approximately $221,000. Atria Investments Inc grew its holdings in Federal Signal by 65.0% during the 2nd quarter. Atria Investments Inc now owns 5,181 shares of the conglomerate's stock worth $551,000 after acquiring an additional 2,041 shares during the last quarter. Spire Wealth Management boosted its stake in shares of Federal Signal by 32.3% in the 2nd quarter. Spire Wealth Management now owns 2,668 shares of the conglomerate's stock valued at $284,000 after purchasing an additional 651 shares during the last quarter. Finally, Envestnet Asset Management Inc. boosted its stake in shares of Federal Signal by 19.1% in the 2nd quarter. Envestnet Asset Management Inc. now owns 226,161 shares of the conglomerate's stock valued at $24,068,000 after purchasing an additional 36,242 shares during the last quarter. Institutional investors and hedge funds 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.