Stock Story -
Safety and security company Federal Signal (NYSE:FSS) will be announcing earnings results tomorrow before market hours. Here's what to look for.
Federal Signal met analysts' revenue expectations last quarter, reporting revenues of $424.9 million, up 10.2% year on year. It was a solid quarter for the company, with an impressive beat of analysts' earnings estimates.
Is Federal Signal a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Federal Signal's revenue to grow 10.2% year on year to $487.4 million, slowing from the 20.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.84 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Federal Signal has missed Wall Street's revenue estimates twice over the last two years.
Looking at Federal Signal's peers in the heavy machinery segment, some have already reported their Q2 results, giving us a hint as to what we can expect. PACCAR (NASDAQ:PCAR)'s revenues decreased 2.1% year on year, meeting analysts' expectations, and Greenbrier reported a revenue decline of 21%, falling short of estimates by 10.9%. Greenbrier traded down 6.1% following the results.
Read the full analysis of PACCAR's and Greenbrier's results on StockStory.
There has been positive sentiment among investors in the heavy machinery segment, with share prices up 8.3% on average over the last month. Federal Signal is up 15.1% during the same time and is heading into earnings with an average analyst price target of $88.6 (compared to the current share price of $97.5).
