Federal Signal (NYSE: FSS) is expected to report Q2 earnings on Aug. 3. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Federal Signal's revenues will increase 3.1% and EPS will improve 22.2%.

The average estimate for revenue is $210.9 million. On the bottom line, the average EPS estimate is $0.11.

Revenue details
Last quarter, Federal Signal logged revenue of $224.6 million. 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
Last quarter, non-GAAP EPS came in at $0.01. GAAP EPS were -$0.01 for Q1 versus -$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.

Recent performance
For the preceding quarter, gross margin was 25.0%, 110 basis points better than the prior-year quarter. Operating margin was 3.6%, 510 basis points better than the prior-year quarter. Net margin was -0.2%, 290 basis points better than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $847.9 million. The average EPS estimate is $0.32.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 66 members out of 79 rating the stock outperform, and 13 members rating it underperform. Among 18 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 16 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 $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." Click here for instant access to this free report.