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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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 of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio.
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