Federal Signal (NYSE: 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.

Revenue details
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 details
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.

Margin details
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.

Looking ahead
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.

Investor sentiment
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.

Over the decades, small-cap stocks like Federal Signal have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Get instant access to this free report.