Safety and security company Federal Signal (NYSE:FSS) will be reporting earnings tomorrow before market open. Here’s what to expect.
Federal Signal missed analysts’ revenue expectations by 2.5% last quarter, reporting revenues of $474.2 million, up 6.2% year on year. It was a mixed quarter for the company, with full-year EPS guidance exceeding analysts’ expectations but a miss of analysts’ backlog 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 7.8% year on year to $483.4 million, slowing from the 14.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.87 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 twice over the last two years.
Looking at Federal Signal’s peers in the heavy transportation equipment segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Cummins’s revenues decreased 1.1% year on year, beating analysts’ expectations by 4.7%, and Oshkosh reported revenues up 6.3%, topping estimates by 8.6%. Cummins traded up 6.2% following the results while Oshkosh was also up 21.6%.
Read our full analysis of Cummins’s results here and Oshkosh’s results here.
Stocks generally had a good 2024. The Fed fought high inflation and won without sending the economy into a recession, otherwise lovingly known as a soft landing. The US Central Bank is now cutting rates. That, plus the election of Donald Trump in November 2024, sent markets even higher, and while some of the heavy transportation equipment stocks have shown solid performance, the group has generally underperformed, with share prices down 7.4% on average over the last month. Federal Signal is down 7.5% during the same time and is heading into earnings with an average analyst price target of $102.17 (compared to the current share price of $90.78).
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