Safety and security company Federal Signal (NYSE: FSS) will be reporting earnings this Thursday before market hours. Here’s what to look for.
Federal Signal beat analysts’ revenue expectations by 5.2% last quarter, reporting revenues of $564.6 million, up 15.1% year on year. It was a stunning quarter for the company, with a solid beat of analysts’ revenue estimates and full-year EPS guidance exceeding analysts’ expectations.
Is Federal Signal a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Federal Signal’s revenue to grow 14.9% year on year to $544.8 million, improving from the 6.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.08 per share.
Analysts covering the company have generally 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 Q3 results, giving us a hint as to what we can expect. Greenbrier’s revenues decreased 27.9% year on year, missing analysts’ expectations by 0.6%, and PACCAR reported a revenue decline of 19%, topping estimates by 0.6%. PACCAR traded up 2.4% following the results.
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 3.1% on average over the last month. Federal Signal is up 5.8% during the same time and is heading into earnings with an average analyst price target of $133 (compared to the current share price of $125.90).
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