Federal Signal (FSS) Tops Q2 EPS by 12c, Revenues Beat; Lifts FY18 EPS Views Above Consensus

Federal Signal (NYSE: FSS) reported Q2 EPS of $0.45, $0.12 better than the analyst estimate of $0.33. Revenue for the quarter came in at $291 million versus the consensus estimate of $271.76 million.

• Net sales of $291 million, up $67 million, or 30%, from last year, including organic growth of $27 million, or 13%
• Orders of $278 million, up $7 million from last year, including organic growth of 3%
• GAAP EPS of $0.44, up from $0.19 last year
• Adjusted EPS of $0.45, up from $0.23 last year
• Raising full-year adjusted EPS* outlook to a range of $1.26 to $1.32, which would equate to year-over-year improvement of between 48% and 55%

"With the schedule for deliveries within our backlog entering the quarter, and the effects of the extended winter season which lingered in much of North America into late March, we were anticipating a strong second quarter," commented Jennifer L. Sherman, President and Chief Executive Officer. "Our results exceeded those expectations, reflecting significant year-over-year growth in both the top and bottom line. Our 30% sales growth included the effects of continued momentum on our organic growth initiatives, like our expansion into the utility market, higher rental and aftermarket demand, and a full quarter of activity in what is typically a seasonally-strong quarter for TBEI. Our adjusted EBITDA margin of 16.4% exceeded our target range, benefiting from actions taken in response to increasing commodity costs, favorable sales mix and operational efficiencies associated with increased production levels. I was also pleased with our strong order intake, including 3% organic growth, despite the pull forward of orders noted in the previous two quarters."

GUIDANCE:

Federal Signal sees FY2018 EPS of $1.26-$1.32, versus the consensus of $1.19.

For earnings history and earnings-related data on Federal Signal (FSS) click here.

You May Also Be Interested In

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• Outlook Therapeutics (OTLK) Misses Q3 EPS by 9c
• Boost Run, Inc. (BRUN) Reports Q2 Revenue of $31.1M