Latest news with #FederalSignal
Yahoo
14-05-2025
- Business
- Yahoo
FSS Q1 Earnings Call: Aftermarket and Market Share Initiatives Drive Above-Expectation Results
Safety and security company Federal Signal (NYSE:FSS) reported Q1 CY2025 results exceeding the market's revenue expectations , with sales up 9.2% year on year to $463.8 million. The company's full-year revenue guidance of $2.06 billion at the midpoint came in 0.5% above analysts' estimates. Its non-GAAP profit of $0.76 per share was 4% above analysts' consensus estimates. Is now the time to buy FSS? Find out in our full research report (it's free). Revenue: $463.8 million vs analyst estimates of $459.1 million (9.2% year-on-year growth, 1% beat) Adjusted EPS: $0.76 vs analyst estimates of $0.73 (4% beat) Adjusted EBITDA: $85.1 million vs analyst estimates of $82.38 million (18.3% margin, 3.3% beat) The company reconfirmed its revenue guidance for the full year of $2.06 billion at the midpoint Management slightly raised its full-year Adjusted EPS guidance to $3.76 at the midpoint Operating Margin: 14.2%, up from 12.8% in the same quarter last year Free Cash Flow Margin: 6.7%, up from 5.4% in the same quarter last year Backlog: $1.1 billion at quarter end, in line with the same quarter last year Market Capitalization: $5.73 billion Federal Signal's first quarter results were driven by broad-based demand across both its Environmental Solutions and Safety and Security Systems groups. CEO Jennifer Sherman attributed the company's performance to higher production levels, growth in aftermarket offerings, proactive management of supply chain and pricing dynamics, and contributions from recent acquisitions. Sherman highlighted that double-digit growth in road-marking equipment and dump bodies was the result of ongoing market share expansion efforts, particularly in key Southeastern markets such as Texas and Florida. She also noted that lead times have improved, with capacity utilization around 70-72%, allowing for further volume absorption without significant new investment. Looking ahead, management reaffirmed full-year revenue guidance and slightly raised adjusted EPS expectations, citing strong order intake and record backlog as providing visibility for the rest of the year. Sherman indicated that Federal Signal's predominantly North American supply chain limits direct exposure to global tariffs, and the company remains focused on insourcing and operational optimization. CFO Ian Hudson emphasized the company's low net debt leverage and flexibility to invest in organic growth, pursue acquisitions like HOG Technologies, and return capital to shareholders via dividends and opportunistic share repurchases. Federal Signal's management identified several operational and end-market factors that shaped quarterly performance, including strategic product initiatives, supply chain adjustments, and targeted M&A. Aftermarket expansion: Management noted that aftermarket revenue, including rentals and used equipment sales, grew 11% year-over-year due to strong rental utilization and customer demand for post-sale services. These offerings now account for approximately 26% of Environmental Solutions Group revenue, supporting recurring income streams. Market share gains in core products: Double-digit organic growth in road-marking equipment and dump bodies was attributed to targeted initiatives to expand geographic reach and win conquest customers, especially in the Southeast U.S. Over 75% of dump truck revenue growth came from new customers. Operational leverage and production ramp: Higher production at the company's two largest Environmental Solutions Group facilities drove margin expansion. Lead times for key products, like three-wheel street sweepers, have improved, enabling more timely order fulfillment and efficient use of existing capacity. Supply chain localization and tariff mitigation: With more than 95% of direct supplies sourced from North America, Federal Signal's exposure to tariff-related cost increases remains minimal. Recent investments in domestic printed circuit board manufacturing further reduce reliance on Asian suppliers. Recent acquisitions contributing to results: The HOG Technologies acquisition added approximately $5 million in net sales during the quarter and is expected to generate $50–$55 million in sales for the full year. Integration is progressing, with initial customer response described as positive by management. Management expects continued order strength and operational improvements to underpin future results. The company's outlook emphasizes diversification of end markets, ongoing supply chain optimization, and execution of strategic growth initiatives. Geographic and market expansion: Efforts to grow in underpenetrated regions and segments, particularly through cross-selling and dealer network optimization, are expected to drive organic growth ahead of end-market demand. New product development and adoption: Federal Signal is accelerating launches of control systems and safety technologies, such as the RegenX air sweeper and Pathfinder Perimeter Breach Warning System, to address customer labor and safety needs and expand content per vehicle. Tariff and supply chain risk management: The company's limited direct exposure to Chinese components and the ability to pass through chassis price changes to customers help mitigate risks from global tariff policies. Management is accelerating insourcing where possible to further reduce supply chain risk. Jacob Moore (KeyBanc Capital Markets): Asked about available capacity and lead time improvements; management said capacity utilization is around 70-72% and lead times are now at targeted levels for core products, reducing the need for major new investments. Sam Karlov (William Blair): Queried whether strong Q1 orders reflected demand pull-forward ahead of tariffs; management emphasized broad-based order strength and minimal evidence of pre-buy activity due to long lead times and ability to surcharge backlog. Tim Thein (Raymond James): Inquired about drivers of margin improvement in Environmental Solutions; CFO Ian Hudson cited higher production, operating leverage, and ongoing progress in reducing lead times, without any unusual or nonrecurring items. Christopher Moore (CJS Securities): Asked about pricing power and ability to pass through supply cost increases; CEO Jennifer Sherman said most chassis costs are passed through to customers and the company's supply chain localization provides flexibility to manage tariffs. Linda Wiley (D.A. Davidson): Sought an update on the rental business and near-term outlook; management responded that rental and used equipment revenues were both up double digits, and the rental fleet helps accelerate new product adoption and provides customer flexibility. In the coming quarters, the StockStory team will be monitoring (1) the pace and impact of new product rollouts, especially in sweepers and police safety equipment, (2) continued execution of geographic expansion and market share initiatives in specialty vehicles, and (3) order and backlog trends in both public and industrial segments. Integration progress of recent acquisitions and adaptation to evolving tariff and supply chain policies will also be closely watched. Federal Signal currently trades at a forward P/E ratio of 24.6×. In the wake of earnings, is it a buy or sell? The answer lies in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. 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Yahoo
14-05-2025
- Business
- Yahoo
Is Federal Signal (FSS) Stock Outpacing Its Conglomerates Peers This Year?
The Conglomerates group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Federal Signal (FSS) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out. Federal Signal is a member of the Conglomerates sector. This group includes 21 individual stocks and currently holds a Zacks Sector Rank of #3. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group. The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Federal Signal is currently sporting a Zacks Rank of #2 (Buy). Over the past 90 days, the Zacks Consensus Estimate for FSS' full-year earnings has moved 1.8% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving. Our latest available data shows that FSS has returned about 1.3% since the start of the calendar year. Meanwhile, stocks in the Conglomerates group have gained about 0.5% on average. As we can see, Federal Signal is performing better than its sector in the calendar year. Another Conglomerates stock, which has outperformed the sector so far this year, is Hitachi Ltd. (HTHIY). The stock has returned 8.6% year-to-date. Over the past three months, Hitachi Ltd.'s consensus EPS estimate for the current year has increased 8.2%. The stock currently has a Zacks Rank #1 (Strong Buy). Looking more specifically, Federal Signal belongs to the Diversified Operations industry, which includes 21 individual stocks and currently sits at #69 in the Zacks Industry Rank. Stocks in this group have gained about 0.5% so far this year, so FSS is performing better this group in terms of year-to-date returns. Hitachi Ltd. is also part of the same industry. Going forward, investors interested in Conglomerates stocks should continue to pay close attention to Federal Signal and Hitachi Ltd. as they could maintain their solid performance. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Federal Signal Corporation (FSS) : Free Stock Analysis Report Hitachi Ltd. (HTHIY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
05-05-2025
- Automotive
- Yahoo
Earnings To Watch: Commercial Vehicle Group (CVGI) Reports Q1 Results Tomorrow
Vehicle systems manufacturer Commercial Vehicle Group (NASDAQ:CVGI) will be reporting results tomorrow afternoon. Here's what investors should know. Commercial Vehicle Group beat analysts' revenue expectations by 3.1% last quarter, reporting revenues of $163.3 million, down 26.8% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts' EBITDA estimates but a significant miss of analysts' EPS estimates. Is Commercial Vehicle Group a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Commercial Vehicle Group's revenue to decline 29.5% year on year to $163.5 million, a further deceleration from the 11.7% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.15 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Commercial Vehicle Group has missed Wall Street's revenue estimates five times over the last two years. Looking at Commercial Vehicle Group's peers in the heavy transportation equipment segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Shyft delivered year-on-year revenue growth of 3.4%, beating analysts' expectations by 2.8%, and Federal Signal reported revenues up 9.2%, topping estimates by 1%. Shyft traded up 18.1% following the results while Federal Signal was also up 11.4%. Read our full analysis of Shyft's results here and Federal Signal's results here. There has been positive sentiment among investors in the heavy transportation equipment segment, with share prices up 13% on average over the last month. Commercial Vehicle Group is down 12% during the same time and is heading into earnings with an average analyst price target of $5 (compared to the current share price of $0.99). Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Sign in to access your portfolio
Yahoo
05-05-2025
- Business
- Yahoo
What To Expect From Douglas Dynamics's (PLOW) Q1 Earnings
Snow and ice equipment company Douglas Dynamics (NYSE:PLOW) will be announcing earnings results tomorrow after market hours. Here's what to expect. Douglas Dynamics missed analysts' revenue expectations by 7.5% last quarter, reporting revenues of $143.5 million, up 6.9% year on year. It was a mixed quarter for the company, with a solid beat of analysts' EPS estimates. Is Douglas Dynamics a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Douglas Dynamics's revenue to grow 12.7% year on year to $107.8 million, slowing from the 15.9% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.01 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Douglas Dynamics has missed Wall Street's revenue estimates four times over the last two years. Looking at Douglas Dynamics's peers in the heavy transportation equipment segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Shyft delivered year-on-year revenue growth of 3.4%, beating analysts' expectations by 2.8%, and Federal Signal reported revenues up 9.2%, topping estimates by 1%. Shyft traded up 18.1% following the results while Federal Signal was also up 11.4%. Read our full analysis of Shyft's results here and Federal Signal's results here. There has been positive sentiment among investors in the heavy transportation equipment segment, with share prices up 13% on average over the last month. Douglas Dynamics is up 9.6% during the same time and is heading into earnings with an average analyst price target of $33.67 (compared to the current share price of $24.53). Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
Yahoo
30-04-2025
- Business
- Yahoo
Federal Signal (NYSE:FSS) Posts Better-Than-Expected Sales In Q1
Safety and security company Federal Signal (NYSE:FSS) reported Q1 CY2025 results exceeding the market's revenue expectations , with sales up 9.2% year on year to $463.8 million. The company's full-year revenue guidance of $2.06 billion at the midpoint came in 0.5% above analysts' estimates. Its non-GAAP profit of $0.76 per share was 3.9% above analysts' consensus estimates. Is now the time to buy Federal Signal? Find out in our full research report. Revenue: $463.8 million vs analyst estimates of $459.1 million (9.2% year-on-year growth, 1% beat) Adjusted EPS: $0.76 vs analyst estimates of $0.73 (3.9% beat) Adjusted EBITDA: $85.1 million vs analyst estimates of $82.38 million (18.3% margin, 3.3% beat) The company reconfirmed its revenue guidance for the full year of $2.06 billion at the midpoint Management slightly raised its full-year Adjusted EPS guidance to $3.76 at the midpoint Operating Margin: 14.2%, up from 12.8% in the same quarter last year Free Cash Flow Margin: 6.7%, up from 5.4% in the same quarter last year Backlog: $1.10 billion at quarter end, in line with the same quarter last year Market Capitalization: $4.62 billion "With our teams' continued focus on operational execution and serving our customers, our businesses were able to deliver 9% year-over-year net sales growth, double-digit operating income improvement, gross margin expansion, and a 170-basis point increase in adjusted EBITDA margin during the first quarter," commented Jennifer L. Sherman, President and Chief Executive Officer. Developing sirens that warned of air raid attacks or fallout during the Cold War, Federal Signal (NYSE:FSS) provides safety and emergency equipment for government agencies, municipalities, and industrial companies. A company's long-term sales performance is one signal of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last five years, Federal Signal grew its sales at a solid 9% compounded annual growth rate. Its growth surpassed the average industrials company and shows its offerings resonate with customers, a great starting point for our analysis. We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Federal Signal's annualized revenue growth of 12.9% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated. We can better understand the company's revenue dynamics by analyzing its backlog, or the value of its outstanding orders that have not yet been executed or delivered. Federal Signal's backlog reached $1.10 billion in the latest quarter and averaged 10.8% year-on-year growth over the last two years. Because this number is lower than its revenue growth, we can see the company fulfilled orders at a faster rate than it added new orders to the backlog. This implies Federal Signal was operating efficiently but raises questions about the health of its sales pipeline. This quarter, Federal Signal reported year-on-year revenue growth of 9.2%, and its $463.8 million of revenue exceeded Wall Street's estimates by 1%. Looking ahead, sell-side analysts expect revenue to grow 9% over the next 12 months, a deceleration versus the last two years. Still, this projection is commendable and indicates the market is baking in success for its products and services. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals. Federal Signal has been an efficient company over the last five years. It was one of the more profitable businesses in the industrials sector, boasting an average operating margin of 12.8%. This result was particularly impressive because of its low gross margin, which is mostly a factor of what it sells and takes huge shifts to move meaningfully. Companies have more control over their operating margins, and it's a show of well-managed operations if they're high when gross margins are low. Analyzing the trend in its profitability, Federal Signal's operating margin rose by 4.1 percentage points over the last five years, as its sales growth gave it operating leverage. In Q1, Federal Signal generated an operating profit margin of 14.2%, up 1.4 percentage points year on year. The increase was encouraging, and because its operating margin rose more than its gross margin, we can infer it was more efficient with expenses such as marketing, R&D, and administrative overhead. We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Federal Signal's EPS grew at a remarkable 12.9% compounded annual growth rate over the last five years, higher than its 9% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded. We can take a deeper look into Federal Signal's earnings to better understand the drivers of its performance. As we mentioned earlier, Federal Signal's operating margin expanded by 4.1 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its higher earnings; taxes and interest expenses can also affect EPS but don't tell us as much about a company's fundamentals. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. For Federal Signal, its two-year annual EPS growth of 29% was higher than its five-year trend. We love it when earnings growth accelerates, especially when it accelerates off an already high base. In Q1, Federal Signal reported EPS at $0.76, up from $0.64 in the same quarter last year. This print beat analysts' estimates by 3.9%. Over the next 12 months, Wall Street expects Federal Signal's full-year EPS of $3.46 to grow 10.9%. It was great to see Federal Signal beat analysts' backlog, revenue, EPS, and EBITDA expectations this quarter. We were also glad it slightly raised its full-year EPS guidance. Overall, we think this was a solid quarter with some key areas of upside. The stock remained flat at $76 immediately following the results. Indeed, Federal Signal had a rock-solid quarterly earnings result, but is this stock a good investment here? If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
