What To Expect From Federal Signal’s (FSS) Q3 Earnings

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What To Expect From Federal Signal’s (FSS) Q3 Earnings

Safety and security company Federal Signal (NYSE:FSS) will be reporting earnings tomorrow before market open. Here’s what you need to know.

Federal Signal met analysts’ revenue expectations last quarter, reporting revenues of $490.4 million, up 10.8% year on year. It was a strong quarter for the company, with an impressive 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 7.9% year on year to $481.7 million, slowing from the 28.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.84 per share.

Federal Signal Total Revenue
Federal Signal Total Revenue

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 twice 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. Allison Transmission delivered year-on-year revenue growth of 12%, beating analysts’ expectations by 4.3%, and PACCAR reported a revenue decline of 6.4%, topping estimates by 1.4%. PACCAR traded down 5.3% following the results.

Read our full analysis of Allison Transmission’s results here and PACCAR’s results here.

Investors in the heavy transportation equipment segment have had steady hands going into earnings, with share prices flat over the last month. Federal Signal is down 8.8% during the same time and is heading into earnings with an average analyst price target of $99.40 (compared to the current share price of $84.53).

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