Sidoti Has Strong Forecast for Federal Signal Q3 Earnings

Key Points

• Sidoti raised its Q3 2026 EPS forecast for Federal Signal to $1.31 from $1.24, while projecting FY2026 EPS of $5.22 and FY2027 EPS of $5.57.
• Federal Signal’s latest quarter exceeded expectations, with EPS of $1.42 versus $1.29 consensus and revenue of $670.2 million, up 18.7% year over year. The company reaffirmed FY2026 EPS guidance of $5.12–$5.30.
• Analyst sentiment remains generally positive: Federal Signal has an average rating of “Buy” and a consensus price target of $137.33, compared with its recent share price near $124.91.

Federal Signal Corporation (NYSE:FSS - Free Report) - Investment analysts at Sidoti lifted their Q3 2026 earnings per share (EPS) estimates for shares of Federal Signal in a note issued to investors on Friday, July 31st. Sidoti analyst G. Burns now expects that the conglomerate will post earnings of $1.31 per share for the quarter, up from their previous forecast of $1.24. The consensus estimate for Federal Signal's current full-year earnings is $5.23 per share. Sidoti also issued estimates for Federal Signal's Q4 2026 earnings at $1.31 EPS, FY2026 earnings at $5.22 EPS, Q1 2027 earnings at $1.24 EPS, Q2 2027 earnings at $1.47 EPS, Q3 2027 earnings at $1.42 EPS, Q4 2027 earnings at $1.44 EPS and FY2027 earnings at $5.57 EPS.

Federal Signal (NYSE:FSS - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The conglomerate reported $1.42 earnings per share for the quarter, topping the consensus estimate of $1.29 by $0.13. The company had revenue of $670.20 million for the quarter, compared to the consensus estimate of $667.04 million. Federal Signal had a return on equity of 21.36% and a net margin of 11.66%.Federal Signal's revenue was up 18.7% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.17 EPS. Federal Signal has set its FY 2026 guidance at 5.120-5.300 EPS.

Several other analysts have also recently weighed in on FSS. DA Davidson raised their target price on shares of Federal Signal from $125.00 to $132.00 and gave the company a "neutral" rating in a report on Friday, May 1st. Zacks Research upgraded shares of Federal Signal from a "hold" rating to a "strong-buy" rating in a report on Monday, May 4th. Weiss Ratings raised shares of Federal Signal from a "buy (b-)" rating to a "buy (b)" rating in a research report on Tuesday, June 23rd. KeyCorp reiterated an "overweight" rating and set a $140.00 target price on shares of Federal Signal in a research note on Thursday, April 30th. Finally, Wall Street Zen lowered Federal Signal from a "buy" rating to a "hold" rating in a report on Saturday. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and one has assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Buy" and a consensus price target of $137.33.

Federal Signal Stock Performance

Shares of Federal Signal stock opened at $124.91 on Monday. Federal Signal has a one year low of $101.18 and a one year high of $134.51. The company has a market cap of $7.62 billion, a PE ratio of 26.92, a P/E/G ratio of 1.71 and a beta of 1.24. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.21 and a current ratio of 2.74. The business has a 50-day simple moving average of $117.17 and a 200-day simple moving average of $114.87.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. EverSource Wealth Advisors LLC raised its stake in Federal Signal by 140.6% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 243 shares of the conglomerate's stock worth $26,000 after acquiring an additional 142 shares in the last quarter. Palladiem LLC purchased a new stake in Federal Signal in the fourth quarter valued at $27,000. Physician Wealth Advisors Inc. boosted its stake in Federal Signal by 57.2% in the first quarter. Physician Wealth Advisors Inc. now owns 250 shares of the conglomerate's stock valued at $27,000 after acquiring an additional 91 shares in the last quarter. Caitong International Asset Management Co. Ltd boosted its stake in Federal Signal by 3,100.0% in the third quarter. Caitong International Asset Management Co. Ltd now owns 256 shares of the conglomerate's stock valued at $30,000 after acquiring an additional 248 shares in the last quarter. Finally, Covestor Ltd grew its holdings in shares of Federal Signal by 118.0% during the fourth quarter. Covestor Ltd now owns 279 shares of the conglomerate's stock worth $30,000 after purchasing an additional 151 shares during the last quarter. Institutional investors and hedge funds own 92.73% of the company's stock.

Federal Signal Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, August 27th. Shareholders of record on Friday, August 14th will be issued a dividend of $0.15 per share. The ex-dividend date of this dividend is Friday, August 14th. This represents a $0.60 dividend on an annualized basis and a yield of 0.5%. Federal Signal's dividend payout ratio (DPR) is presently 12.93%.

Key Stories Impacting Federal Signal

Here are the key news stories impacting Federal Signal this week:

• Positive Sentiment: Quarterly earnings surpassed estimates. Federal Signal reported second-quarter adjusted EPS of $1.42, up from $1.17 a year earlier and above analyst estimates of approximately $1.28-$1.29. Revenue increased 18.7% year over year to $670.2 million, slightly exceeding the $667.0 million consensus. Federal Signal Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Record operating performance and stronger demand supported the outlook. The company reported 19% net-sales growth, a 21% improvement in operating income, strong cash generation and an 18% increase in orders, indicating healthy customer demand and operational execution. Federal Signal Reports Record Second Quarter Results
• Positive Sentiment: Full-year EPS guidance was raised above expectations. Federal Signal now expects fiscal 2026 EPS of $5.12-$5.30, compared with the analyst consensus of $4.97. Revenue guidance of $2.6-$2.7 billion was broadly in line with consensus, but the higher profit outlook is a key bullish signal for investors. Federal Signal Posts Q2 Sales in Line With Estimates
• Neutral Sentiment: The earnings call and related presentations provided additional commentary on the quarterly performance, order trends and updated outlook, but the available reports did not identify a material negative development. Federal Signal Q2 2026 Earnings Call Transcript

Federal Signal Company Profile

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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