Federal Signal (NYSE: 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.

Revenue details
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.

EPS details
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.

Margin details
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.

Looking ahead
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.

Investor sentiment
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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