- KeyBanc analyst Steve Barger lowered the price target to Federal Signal Corp (NYSE:FSS) to $48 (up 37.5%) from $55 and maintained an overweight rating on equities.
- The analyst mentions that the shares fell following the company’s fourth quarter results and guidance for 2022. He believes the decline was driven by the EPS guide of $1.76 to $2.00 from at a consensus of $2.14.
- Barger estimates that the guide implies an additional margin of around ten percent despite a fairly strong revenue outlook, driven by supply chain and workforce challenges in the first half of 2022.
- While these dynamics aren’t unique to Federal Signal, the low conversion is disappointing relative to its record order backlog, Barger says.
- Raymond James Analyst Felix Boeschen lowered the price target to $46 (up 32%) from $52 and maintained a strong buy rating on the stock.
- Recentlythe company posted fourth-quarter sales growth of 2% year-over-year to $301.4 million, slightly missing the consensus of $301.67 million.
- Adjusted EPS was $0.40, beating the consensus of $0.38.
- Orders for the quarter were $444 million, up 61% year-on-year. Backlog was $629 million, up 107% year-on-year.
- Adjusted EBITDA margin decreased to 13.3% for the quarter from 15.9% a year ago.
- As of December 31, 2021, total debt was $283 million, total cash and cash equivalents were $41 million and the company had $209 million available for borrowing under its credit facility.
- Outlook for FY22: The company forecasts net sales of $1.35-1.45 billion versus consensus of $1.39 billion and adjusted EPS of $1.76-2.00 versus consensus of $2.14 .
- Price action: FSS shares are trading up 3.71% at $34.90 when last checked on Wednesday.
Latest reviews for FSS
|March 2022||Raymond James||Maintains||strong purchase|
|Jan 2022||Raymond James||Maintains||strong purchase|
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