Safety and security company Federal Signal (NYSE: FSS) will be reporting earnings this Wednesday morning. Here’s what to expect.
Federal Signal beat analysts’ revenue expectations by 1% last quarter, reporting revenues of $463.8 million, up 9.2% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ backlog estimates and a solid beat of analysts’ EBITDA estimates.
Is Federal Signal a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Federal Signal’s revenue to grow 9.5% year on year to $536.8 million, slowing from the 10.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.06 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Federal Signal has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Federal Signal’s peers in the heavy transportation equipment segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Greenbrier delivered year-on-year revenue growth of 2.7%, beating analysts’ expectations by 7.3%, and PACCAR reported a revenue decline of 15.7%, topping estimates by 2.6%. Greenbrier traded up 21.1% following the results while PACCAR was also up 8.9%.
Read our full analysis of Greenbrier’s results here and PACCAR’s results here.
There has been positive sentiment among investors in the heavy transportation equipment segment, with share prices up 6.5% on average over the last month. Federal Signal is up 1.8% during the same time and is heading into earnings with an average analyst price target of $110.75 (compared to the current share price of $108.37).
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