The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Federal Signal beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly. Non-GAAP earnings per share dropped. GAAP earnings per share increased.
Gross margins dropped, operating margins expanded, net margins expanded.
Federal Signal recorded revenue of $217.7 million. The two analysts polled by S&P Capital IQ anticipated revenue of $208.4 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $195.0 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 $0.08. The three earnings estimates compiled by S&P Capital IQ anticipated $0.11 per share. Non-GAAP EPS of $0.08 for Q4 were 11% lower than the prior-year quarter's $0.09 per share. (The prior-year quarter included -$0.35 per share in earnings from discontinued operations.) GAAP EPS were $0.07 for Q4 compared to -$0.25 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 22.8%, 60 basis points worse than the prior-year quarter. Operating margin was 6.2%, 30 basis points better than the prior-year quarter. Net margin was 2.2%, 1,000 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $196.0 million. On the bottom line, the average EPS estimate is $0.10.
Next year's average estimate for revenue is $818.7 million. The average EPS estimate is $0.54.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 67 members out of 81 rating the stock outperform, and 14 members rating it underperform. Among 22 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 20 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 $7.50.
Is Federal Signal the right retailer for your portfolio? Learn how to maximize your investment income and ""Secure Your Future With 9 Rock-Solid Dividend Stocks,"" including one above-average retailing powerhouse. Click here for instant access to this free report.
- Add Federal Signal to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.