Federal Signal Tops Q1 Estimates, Lifts Low End Of FY22 Guidance

  • Federal Signal Corp FSS reported first-quarter sales growth of 18% year-over-year to $330.2 million, beating the consensus of $302.71 million.
  • Orders increased 18% Y/Y to $452.6 million for the quarter, with the backlog at $751 million (+83% Y/Y).
  • Adjusted EPS was $0.34, beating the consensus of $0.27.
  • ESG revenues grew 20% Y/Y and SSG revenues +10% Y/Y.
  • The gross margin contracted by 175 bps to 22.9%. The operating income increased 3% Y/Y to $28.5 million, and the margin declined to 8.6% for the quarter from 10% in 1Q21.
  • Adjusted EBITDA improved by 2% Y/Y to $42.2 million, and margin contracted by 200 bps to 12.8%.
  • Federal Signal's cash and cash equivalents stood at $39 million and net debt at ~$291 million as of March 31, 2022. FSS's operating cash flow during the first quarter was $7 million.
  • Recently, the company's board declared a quarterly cash dividend of $0.09 per share, payable on June 3, 2022, to stockholders of record on May 20, 2022.
  • FY22 Outlook: Federal Signal raised the low end of the FY22 Adjusted EPS outlook to $1.80 - $2.00 from the prior view of $1.76 - $2.00 (consensus $1.89).
  • It also raised the low end of the net sales outlook by $30 million to $1.38 billion - $1.45 billion from the prior view of $1.35 billion - $1.45 billion (consensus $1.40 billion).
  • Price Action: FSS shares are trading lower by 0.59% at $33.83 on the last check Monday.

Posted In: BriefsEarningsNewsGuidanceDividends

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