Federal Signal Earnings: Everything You Must Know Now

Federal Signal Corp. (NYSE:FSS) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.

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Federal Signal Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 300% to $0.12 in the quarter versus EPS of $0.03 in the year-earlier quarter.

Revenue: Decreased 11.04% to $199.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Federal Signal Corp. reported adjusted EPS income of $0.12 per share. By that measure, the company beat the mean analyst estimate of $0.10. It beat the average revenue estimate of $199.57 million.

Quoting Management: Dennis J. Martin, President and Chief Executive Officer, stated, “Our long-term trend of expanding margins continued in the first quarter as the Company delivered 6.1% operating income margin, led by the Environmental Solutions Group. This performance marked a significant improvement over the prior year period. We are pleased with the 12% reduction in interest expense during the first quarter versus the prior year period, and the increased interest savings we will experience throughout 2013 and beyond as a result of our successfully completed refinancing.”

Key Stats (on next page)…

Revenue decreased 8.22% from $217.7 million in the previous quarter. EPS increased 33.33% from $0.09 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.13 to a profit $0.14. For the current year, the average estimate has moved up from a profit of $0.52 to a profit of $0.53 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)