- Federal Signal Corporation has updated its full-year adjusted earnings per share (EPS) forecast to a new range of $3.63 to $3.90 from the previous $3.60 to $3.90.
- For the first quarter, the adjusted EPS was $0.76, surpassing last year’s $0.64, and exceeding the estimate of $0.73.
- Net sales for the quarter reached $463.8 million, a 9.2% increase from the previous year, slightly above the estimate of $461.3 million.
- Environmental solutions net sales totaled $387.4 million, marking a 9.4% increase year-over-year, meeting expectations of $387.5 million.
- Safety and security systems net sales increased by 7.8% year-over-year to $76.4 million, outperforming the estimate of $73.9 million.
- The cost of sales rose by 7.8% year-over-year to $333.0 million, slightly less than the projected $333.8 million.
- Adjusted EBITDA increased by 21% year-over-year to $85.1 million, exceeding the estimated $81.8 million.
- Gross profit improved by 13% year-over-year to $130.8 million, surpassing the projection of $128 million.
- Backlog increased slightly by 0.2% year-over-year to $1.10 billion.
- Orders saw a significant rise of 13% year-over-year, totaling $567.9 million.
- Cash and cash equivalents amounted to $57.5 million, an 18% increase from last year, but below the estimated $102.6 million.
- Long-term borrowings and finance lease obligations were $266.9 million, almost unchanged from the previous year but higher than the estimate of $215.1 million.
- The company reaffirmed its full-year net sales outlook, projecting between $2.02 billion and $2.10 billion.
- Market analysts’ ratings include 4 buys, 2 holds, and 1 sell recommendation.
Federal Signal on Smartkarma
Analysts at Baptista Research on Smartkarma are bullish on Federal Signal Corporation’s recent performance. A report titled “Federal Signal‘s Genius Operational Overhaul Is Quietly Boosting Margins & Market Share!” highlights the company’s strong financial results for the fourth quarter and full year of 2024. With record-high net sales of approximately $1.86 billion and significant increases in operating income and adjusted EBITDA, Federal Signal is showing impressive growth.
In another report by Baptista Research titled “Federal Signal’s Bold Capacity Expansion: Why New Facilities Will Dominate the Competition! – Major Drivers”, analysts commend the company for its third-quarter 2024 performance. The report showcases growth in consolidated net sales by 6% to $474 million, driven by organic growth in key segments like the Environmental Solutions Group (ESG) and the Safety and Security Systems Group (SSG). The expansion of new facilities is expected to further strengthen Federal Signal‘s competitive position in the market.
A look at Federal Signal Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analyzing the Smartkarma Smart Scores for Federal Signal Corporation, the long-term outlook appears optimistic. With a Growth score of 4, indicating strong potential for expansion and development, the company is positioned well for future growth opportunities. Additionally, its Resilience score of 3 showcases a solid ability to weather economic storms and maintain stability over time.
While the Value and Dividend scores are moderate at 2, suggesting room for improvement in these areas, the Momentum score of 3 indicates a steady pace of advancement in the company’s overall performance. Federal Signal Corporation manufactures safety, signaling, and communications equipment, catering to various industries with a diverse product range that includes fire rescue products, street sweeping vehicles, and precision tools. This broad portfolio offers the company a foundation for continued growth and market presence.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
