The 10-second takeaway
For the quarter ended March 31 (Q1), Federal Signal met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank. Non-GAAP earnings per share grew significantly. GAAP loss per share contracted.
Margins grew across the board.
Federal Signal chalked up revenue of $199.8 million. The two analysts polled by S&P Capital IQ expected revenue of $201.4 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.12. The three earnings estimates compiled by S&P Capital IQ predicted $0.10 per share. Non-GAAP EPS of $0.12 for Q1 were much higher than the prior-year quarter's $0.01 per share. (The prior-year quarter included -$0.07 per share in earnings from discontinued operations.) GAAP EPS were -$0.01 for Q1 compared to -$0.02 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 23.4%, 30 basis points better than the prior-year quarter. Operating margin was 6.1%, 40 basis points better than the prior-year quarter. Net margin was -0.3%, 20 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $209.5 million. On the bottom line, the average EPS estimate is $0.14.
Next year's average estimate for revenue is $824.2 million. The average EPS estimate is $0.54.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 68 members out of 83 rating the stock outperform, and 15 members rating it underperform. Among 20 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 19 give Federal Signal a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Federal Signal is outperform, with an average price target of $8.50.
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.