Update: Federal Signal Corporation Earnings-EPS Beat, Miss On Revenues But Guidance Raised
Martin Vlcek • Wed, Jul. 30
- FSS reported $0.27 EPS, beating by $0.04 and $234.6M revenues, up 5.4% Y/Y but missing consensus by $7.4M. Full-year EPS guidance was raised to $0.83 to $0.87.
- The turnaround thesis based on debt restructuring and margin improvement worked much better than I expected, and FSS significantly surpassed my price target.
- I am reiterating my buy recommendation and increasing my target price to $16 based on successful deleveraging, increased share buybacks, continued margin improvement and solid top line growth.