Federal Signal (FSS) Tops Q3 EPS by 4c, Revenues Beat; Raises FY18 EPS Guidance Above Consensus

Federal Signal (NYSE: FSS) reported Q3 EPS of $0.36, $0.04 better than the analyst estimate of $0.32. Revenue for the quarter came in at $269 million versus the consensus estimate of $267.14 million.

"Our third quarter results were again outstanding, with significant increases in both the top and bottom line," commented Jennifer L. Sherman, President and Chief Executive Officer. "Our 8% organic sales growth included the effects of continued momentum on our aftermarket and safe-digging initiatives, and the success of our new product introductions. The execution against these strategic goals also contributed to a 17% year-over-year organic order improvement. Adjusted EBITDA margin for the quarter was up significantly in each of our groups, as we realized benefits from higher volumes, improved pricing, favorable sales mix and operational efficiencies, despite the impact of higher commodity costs, which we had anticipated. On a consolidated basis, our adjusted EBITDA margin for the quarter was nearly 15%."

Outlook

"With the outstanding performance in the third quarter, our current backlog, favorable conditions in our end markets and continued traction on our organic growth initiatives, we are increasing our full-year 2018 adjusted EPS* outlook to a new range of between $1.33 and $1.36," Sherman noted. "This would represent an improvement of between 56% and 60% over last year."

GUIDANCE:

Federal Signal sees FY2018 EPS of $1.33-$1.36, versus the consensus of $1.31.

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

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