Sidoti Issues Negative Outlook for Federal Signal Earnings

Federal Signal Corporation (NYSE:FSS) – Equities researchers at Sidoti decreased their Q1 2026 earnings estimates for Federal Signal in a research report issued to clients and investors on Thursday, February 26th. Sidoti analyst G. Burns now expects that the conglomerate will post earnings per share of $0.93 for the quarter, down from their previous estimate of $0.97. The consensus estimate for Federal Signal’s current full-year earnings is $3.34 per share. Sidoti also issued estimates for Federal Signal’s Q2 2026 earnings at $1.28 EPS, Q3 2026 earnings at $1.23 EPS, Q4 2026 earnings at $1.21 EPS, FY2026 earnings at $4.65 EPS and FY2027 earnings at $5.24 EPS.

A number of other equities analysts also recently commented on FSS. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Federal Signal in a report on Monday, December 29th. CJS Securities upgraded shares of Federal Signal from a “market perform” rating to a “market outperform” rating and set a $140.00 price target on the stock in a research report on Thursday. Three equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $126.75.

Federal Signal Price Performance

Shares of FSS opened at $117.70 on Friday. Federal Signal has a 52 week low of $66.47 and a 52 week high of $132.89. The company has a current ratio of 3.02, a quick ratio of 1.25 and a debt-to-equity ratio of 0.41. The firm has a market cap of $7.16 billion, a price-to-earnings ratio of 29.35, a PEG ratio of 1.86 and a beta of 1.35. The stock has a 50 day moving average of $114.52 and a 200-day moving average of $117.35.

Federal Signal (NYSE:FSS) last announced its quarterly earnings data on Wednesday, February 25th. The conglomerate reported $1.16 earnings per share for the quarter, beating the consensus estimate of $1.08 by $0.08. Federal Signal had a return on equity of 20.14% and a net margin of 11.31%.The firm had revenue of $597.10 million during the quarter, compared to analyst estimates of $551.36 million. During the same period in the previous year, the company earned $0.87 earnings per share. Federal Signal’s quarterly revenue was up 26.5% on a year-over-year basis. Federal Signal has set its FY 2026 guidance at 4.500-4.800 EPS.

Hedge Funds Weigh In On Federal Signal

Hedge funds and other institutional investors have recently modified their holdings of the company. CW Advisors LLC bought a new position in Federal Signal during the 2nd quarter valued at $6,426,000. Y Intercept Hong Kong Ltd acquired a new stake in shares of Federal Signal in the third quarter valued at $3,745,000. Campbell & CO Investment Adviser LLC acquired a new stake in shares of Federal Signal in the second quarter valued at $942,000. Entropy Technologies LP bought a new position in Federal Signal during the second quarter valued at about $1,385,000. Finally, Global Alpha Capital Management Ltd. grew its holdings in Federal Signal by 17.3% during the second quarter. Global Alpha Capital Management Ltd. now owns 562,813 shares of the conglomerate’s stock worth $59,895,000 after acquiring an additional 83,100 shares during the period. Institutional investors and hedge funds own 92.73% of the company’s stock.

Key Federal Signal News

Here are the key news stories impacting Federal Signal this week:

• Positive Sentiment: Q4 results beat consensus — Federal Signal reported $1.16 EPS versus $1.08 expected and revenue of $597.1M vs. $551.4M est.; revenue grew ~26.5% year?over?year, showing strong topline momentum. Zacks Q4 Beat
• Positive Sentiment: Record-year commentary and 2026 outlook — company described a record year (27% net sales growth, higher operating income, strong cash generation) and issued FY2026 EPS guidance of $4.50–4.80 and revenue ~$2.6–2.7B, which is generally supportive of earnings growth expectations. PR Newswire Results & Outlook
• Positive Sentiment: Analyst upgrade — CJS Securities upgraded FSS to “market outperform” with a $140 price target, implying ~19% upside from current levels and signaling buy-side confidence from at least one shop. Benzinga Upgrade
• Neutral Sentiment: Investor materials available — earnings call transcript and slide deck give more detail on order trends, margins and cash flow for investors parsing the quarter. Earnings Call Transcript Slide Deck
• Neutral Sentiment: Board additions — the company appointed two new directors; governance hires typically have limited near?term impact but matter for long?term oversight. Director Appointments
• Neutral Sentiment: Acquisition discussion — coverage is asking whether recent or prospective acquisitions (e.g., “Can acquisition fuel growth?”) will sustain momentum — a watch item for investors but not an immediate catalyst. Investing.com Acquisition Piece
• Negative Sentiment: Near?term selling/valuation and profit?taking — despite the beat and constructive guidance, the stock is trading lower; higher volume suggests traders may be taking profits after a run toward the 52?week high and the shares trade at a premium (PE ~30.7), which can amplify short?term volatility. No external link

Federal Signal Company Profile

Federal Signal Corporation (NYSE: FSS), headquartered in Oak Brook, Illinois, is a diversified industrial company that designs, manufactures and markets a broad range of products and services for municipal, commercial and industrial customers worldwide. Founded in 1901 in Chicago, the company has grown through a combination of organic investment and strategic acquisitions to become a leading provider of environmental management and safety and security solutions.

Federal Signal operates through two primary business segments.