Federal Signal (NYSE:FSS) Shares Up 7.8% After Earnings Beat

Federal Signal Corporation (NYSE:FSS)’s share price traded up 7.8% on Wednesday following a stronger than expected earnings report. The company traded as high as $132.75 and last traded at $126.11. 133,553 shares traded hands during mid-day trading, a decline of 63% from the average session volume of 363,373 shares. The stock had previously closed at $116.99.

The conglomerate reported $1.16 earnings per share for the quarter, topping the consensus estimate of $1.08 by $0.08. The firm had revenue of $597.10 million for the quarter, compared to analyst estimates of $551.36 million. Federal Signal had a return on equity of 19.50% and a net margin of 11.47%.The firm’s revenue for the quarter was up 26.5% on a year-over-year basis. During the same period last year, the company earned $0.87 earnings per share. Federal Signal has set its FY 2026 guidance at 4.500-4.800 EPS.

Key Stories Impacting Federal Signal

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

• Positive Sentiment: Q4 beat on both EPS and revenue — FSS reported $1.16 EPS vs. $1.08 consensus and revenue of $597.1M (up ~26–27% YoY), driving the immediate upside. Earnings Beat Article
• Positive Sentiment: FY2026 guidance raised/outlined — management set EPS of $4.50–$4.80 and revenue of $2.6–$2.7B, above consensus revenue, suggesting continued top-line momentum. PR Newswire Release
• Positive Sentiment: Record-year metrics — company highlighted 27% net sales growth, 19% operating income increase, record quarterly orders and strong cash generation, supporting sustainability of margins and cash flow. Earnings Call Transcript
• Neutral Sentiment: Management commentary and slide deck available — investors can review the earnings call transcript and slide deck for segment-level trends and book-to-bill details that will inform longer-term expectations. Slide Deck / Call
• Neutral Sentiment: Acquisition on the radar — commentary and coverage raise the question whether recent or potential M&A (the “Can” acquisition discussion) will accelerate growth; impact remains speculative. Acquisition Article
• Negative Sentiment: Valuation and expectations — FSS trades at a premium valuation (elevated P/E and near its 52-week high), so further upside may be limited absent sustained outperformance; investors may reprice on forward guidance vs. execution risk. Valuation Commentary

Analysts Set New Price Targets

Separately, Weiss Ratings restated a “buy (b-)” rating on shares of Federal Signal in a research report on Monday, December 29th. Two research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $123.00.

Hedge Funds Weigh In On Federal Signal

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

Federal Signal Stock Performance

The firm’s 50-day simple moving average is $114.40 and its two-hundred day simple moving average is $117.35. The company has a current ratio of 2.61, a quick ratio of 1.25 and a debt-to-equity ratio of 0.15. The stock has a market capitalization of $7.29 billion, a PE ratio of 31.29, a PEG ratio of 1.82 and a beta of 1.35.

About Federal Signal

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.