Sidoti Has Negative Estimate for Federal Signal Q1 Earnings

Federal Signal Corporation (NYSE:FSS) – Analysts at Sidoti cut their Q1 2026 EPS estimates for shares of Federal Signal in a research report issued on Thursday, February 26th. Sidoti analyst G. Burns now forecasts that the conglomerate will post earnings per share of $0.93 for the quarter, down from their previous forecast 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.

Several other research firms also recently commented on FSS. Weiss Ratings restated a “buy (b-)” rating on shares of Federal Signal in a report on Monday, December 29th. CJS Securities raised 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 research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, Federal Signal has an average rating of “Moderate Buy” and an average price target of $126.75.

Federal Signal Stock Performance

Federal Signal stock opened at $116.51 on Friday. The company has a debt-to-equity ratio of 0.41, a quick ratio of 1.25 and a current ratio of 3.02. The company has a market capitalization of $7.09 billion, a PE ratio of 29.06, a P/E/G ratio of 1.81 and a beta of 1.35. The company has a 50 day moving average price of $114.60 and a 200-day moving average price of $117.28. Federal Signal has a fifty-two week low of $66.47 and a fifty-two week high of $132.89.

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

Hedge Funds Weigh In On Federal Signal

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. EverSource Wealth Advisors LLC lifted its position in shares of Federal Signal by 140.6% during the second quarter. EverSource Wealth Advisors LLC now owns 243 shares of the conglomerate’s stock valued at $26,000 after buying an additional 142 shares during the last quarter. Palladiem LLC bought a new position in shares of Federal Signal during the 4th quarter worth approximately $27,000. Covestor Ltd lifted its position in Federal Signal by 118.0% during the fourth quarter. Covestor Ltd now owns 279 shares of the conglomerate’s stock valued at $30,000 after acquiring an additional 151 shares during the last quarter. Caitong International Asset Management Co. Ltd boosted its stake in Federal Signal by 3,100.0% in the third quarter. Caitong International Asset Management Co. Ltd now owns 256 shares of the conglomerate’s stock valued at $30,000 after acquiring an additional 248 shares in the last quarter. Finally, MAI Capital Management boosted its stake in Federal Signal by 1,003.8% in the second quarter. MAI Capital Management now owns 287 shares of the conglomerate’s stock valued at $31,000 after acquiring an additional 261 shares in the last quarter. Hedge funds and other institutional investors 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 and guidance beat — Federal Signal reported Q4 EPS above estimates and revenue beat, with management setting FY2026 guidance that supported the rally; the earnings surprise was the main catalyst for the recent jump in the share price. Earnings Transcript
• Positive Sentiment: Dividend increase — the board raised the quarterly cash dividend by ~7% to $0.15 per share, a shareholder-friendly move that supports income-focused demand. Dividend Press Release
• Positive Sentiment: Analyst upgrades and model lifts — CJS Securities upgraded FSS to “market outperform” with a $140 target, and Sidoti raised FY2026 and FY2027 EPS estimates (and several quarterly estimates), reinforcing the bullish fundamental view. Analyst Upgrade (Benzinga)
• Positive Sentiment: Technical momentum/ratings improvement — FSS received a Relative Strength (RS) rating lift to 74, which likely supported short-term buying from momentum/rotation flows. RS Rating Lift
• Neutral Sentiment: Board changes — the company announced two new director appointments, a governance update that is unlikely to move fundamentals immediately but can matter to long-term investors. Director Appointments
• Negative Sentiment: Small Q1 cut in Sidoti note — while Sidoti raised FY2026 and other quarterly forecasts, it trimmed its Q1 2026 EPS view (from $0.97 to $0.93), a modest near-term revision that could temper expectations for the coming quarter. Sidoti Estimates
• Negative Sentiment: Post-rally consolidation and lighter volume — after strong post-earnings gains, the stock is pulling back on below-average volume and is trading slightly under its 200‑day moving average, suggesting short-term profit-taking and consolidation risk. Trading Summary

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.