The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Federal Signal met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share dropped to a loss.
Gross margins grew, operating margins grew, net margins dropped.
Federal Signal chalked up revenue of $185.0 million. The one analyst polled by S&P Capital IQ wanted to see revenue of $187.0 million on the same basis. GAAP reported sales were 4.7% lower than the prior-year quarter's $194.2 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 $0.09. The three earnings estimates compiled by S&P Capital IQ anticipated $0.07 per share. GAAP EPS were -$0.23 for Q3 against $0.03 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 24.6%, 80 basis points better than the prior-year quarter. Operating margin was 6.7%, 290 basis points better than the prior-year quarter. Net margin was -7.9%, 880 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $239.0 million. On the bottom line, the average EPS estimate is $0.11.
Next year's average estimate for revenue is $855.0 million. The average EPS estimate is $0.37.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 64 members out of 76 rating the stock outperform, and 12 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 $7.00.
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