Safety and security company Federal Signal (NYSE: FSS) will be reporting earnings this Wednesday morning. Here’s what you need to know.
Federal Signal beat analysts’ revenue expectations last quarter, reporting revenues of $597.1 million, up 26.5% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and an impressive beat of analysts’ revenue estimates.
Is Federal Signal a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Federal Signal’s revenue to grow 24.9% year on year, improving from the 9.2% increase it recorded in the same quarter last year.
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 multiple times over the last two years.
Looking at Federal Signal’s peers in the heavy machinery segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Wabtec delivered year-on-year revenue growth of 13%, meeting analysts’ expectations, and Greenbrier reported a revenue decline of 22.9%, falling short of estimates by 11.5%. Wabtec traded up 4.6% following the results while Greenbrier was also up 2.9%.
Read our full analysis of Wabtec’s results here and Greenbrier’s results here.
There has been positive sentiment among investors in the heavy machinery segment, with share prices up 15.1% on average over the last month. Federal Signal is up 10.4% during the same time and is heading into earnings with an average analyst price target of $138 (compared to the current share price of $115.66).
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