Federal Signal Increases Sales but Misses Estimates on Earnings
Federal Signal (NYS: FSS) reported earnings on May 4. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Federal Signal beat slightly on revenues and missed estimates on earnings per share.
Compared with the prior-year quarter, revenue expanded significantly and GAAP loss per share dropped.
Margins improved across the board.
Federal Signal logged revenue of $224.6 million. The two analysts polled by S&P Capital IQ anticipated a top line of $220.4 million on the same basis. GAAP reported sales were 29% higher than the prior-year quarter's $173.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.01. The four earnings estimates compiled by S&P Capital IQ anticipated $0.02 per share. GAAP EPS were -$0.01 for Q1 compared to -$0.09 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 25.0%, 110 basis points better than the prior-year quarter. Operating margin was 3.6%, 520 basis points better than the prior-year quarter. Net margin was -0.2%, 290 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $230.6 million. On the bottom line, the average EPS estimate is $0.07.
Next year's average estimate for revenue is $924.4 million. The average EPS estimate is $0.32.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 65 members out of 80 rating the stock outperform, and 15 members rating it underperform. Among 19 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 16 give Federal Signal a green thumbs-up, and three 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 $6.00.
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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. He is the 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 don't 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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