Federal Signal Beats on Both Top and Bottom Lines
Federal Signal (NYS: FSS) reported earnings on March 14. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Federal Signal beat expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP loss per share dropped.
Gross margin dropped, operating margin improved, and net margin expanded.
Federal Signal recorded revenue of $223.3 million. The two analysts polled by S&P Capital IQ looked for a top line of $202.2 million on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $186.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.09. The three earnings estimates compiled by S&P Capital IQ averaged $0.07 per share on the same basis. GAAP EPS were -$0.27 for Q4 compared to -$2.72 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 24.9%, 90 basis points worse than the prior-year quarter. Operating margin was 4.4%, 380 basis points better than the prior-year quarter. Net margin was -7.4%, 8,320 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $220.4 million. On the bottom line, the average EPS estimate is $0.02.
Next year's average estimate for revenue is $924.4 million. The average EPS estimate is $0.33.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 70 members out of 89 rating the stock outperform, and 19 members rating it underperform. Among 21 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 19 give Federal Signal a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Federal Signal is hold, with an average price target of $4.75.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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