Core Viewpoint - Federal Signal Corporation will announce its fourth quarter earnings on February 26, 2025, and will host an investor conference call and webcast on the same day [1]. Group 1: Earnings Announcement - The earnings announcement is scheduled before the market opens on February 26, 2025 [1]. - The investor conference call will take place at 10 a.m. Eastern Time on the same day [1]. Group 2: Access Information - Investors and analysts can access the webcast through the company's website [2]. - The teleconference can be accessed by calling 1-877-704-4453 with a conference ID of 13751729, starting 10 minutes prior to the call [2]. - An archived replay of the investor conference call will be available shortly after the call concludes [2]. Group 3: Company Overview - Federal Signal Corporation, founded in 1901, is a leader in environmental and safety solutions [3]. - The company designs, manufactures, and supplies products for municipal, governmental, industrial, and commercial customers [3]. - It operates two main groups: Environmental Solutions and Safety and Security Systems [3].

Core Viewpoint - Federal Signal Corporation has completed the acquisition of Waterblasting, LLC, owner of Hog Technologies, for an initial purchase price of $78.1 million, with potential earn-out opportunities based on financial performance in 2025 [1][5] Group 1: Acquisition Details - The acquisition includes substantially all assets and operations of Hog Technologies, a leading manufacturer of truck-mounted road-marking, line-removal, and waterblasting equipment [1] - The initial purchase price is funded through existing cash and borrowings under the Company's revolving credit facility, subject to customary adjustments [1] - Federal Signal has also agreed to acquire Hog's primary manufacturing facility in Stuart, Florida for $14.5 million [1] Group 2: Company Background and Market Position - Hog Technologies, founded in 1988, is recognized for its innovative products serving infrastructure, municipal, and airport markets, including patented runway rubber-removal systems [2] - Hog generated annual revenues of approximately $65 million in 2024, with aftermarket parts and services accounting for about 35% of total revenues [4] Group 3: Strategic Alignment and Future Outlook - The acquisition aligns with Federal Signal's strategic priorities to grow its specialty vehicle platform and enhance its leadership in the infrastructure maintenance sector [4] - Management anticipates the acquisition will be accretive to earnings and cash flow in 2025, with further outlook details to be provided during the fourth quarter 2024 earnings call [5]

Core Insights - Milestone Scientific Inc. has received approval for its CompuFlo® Epidural System on the Federal Supply Schedule (FSS), enhancing its position as a contractor for federal healthcare systems [1][2][7] - The FSS designation allows Milestone Scientific to offer pre-negotiated pricing for its products, streamlining procurement for government agencies [2] - The CompuFlo® Epidural System utilizes patented Dynamic Pressure Sensing Technology®, improving patient safety and comfort during epidural procedures [3] Federal Healthcare Opportunities - The FSS approval opens significant opportunities within federal healthcare systems, including the Department of Defense (DoD), the Department of Veterans Affairs (VA), and the Indian Health Service (IHS) [4][5][6] - The Veterans Health Administration (VHA) serves 9.1 million veterans, with one-third experiencing chronic pain, indicating a substantial market for effective pain management solutions [4] - The Military Health System (MHS) serves approximately 9.5 million beneficiaries, with a significant percentage of active-duty service members experiencing chronic pain, highlighting the need for innovative pain management [5] - The Indian Health Service (IHS) provides healthcare to 2.8 million individuals, with 19.3% experiencing chronic pain, particularly among women and older adults [6] Company Strategy and Leadership - The CEO of Milestone Scientific emphasized that securing the FSS approval is a pivotal achievement that validates the efficacy and safety of the CompuFlo® technology [7] - The company has been preparing for this approval by developing a robust pipeline of opportunities across the VA, DoD, and IHS, aiming to drive adoption of the CompuFlo® Epidural System [8]

Industry Overview - The Zacks Diversified Operations industry is benefiting from strong performance in aerospace, defense, and oil & gas sectors, driven by growth in commercial aviation and demand in medical and life sciences [1][4] - Companies in this industry operate across various markets including oil and gas, industrial, electronics, aviation, and healthcare, providing equipment and solutions [3] Major Trends - Strong demand from defense and governmental sectors, along with increased exploration activities in oil and gas, is positively impacting the industry [4] - Continuous investments in innovation and technological advancements are expected to drive growth, with a focus on digitizing business operations to enhance productivity and cost management [5] Challenges - The manufacturing sector is experiencing persistent weakness, with the Manufacturing Purchasing Manager's Index at 46.5% in October, indicating contraction [6] - Supply-chain disruptions, particularly regarding electrical and electronic components, are a concern for industry participants, as reflected in slower deliveries [7] Industry Performance - The Zacks Diversified Operations industry holds a Zacks Industry Rank of 61, placing it in the top 24% of over 250 Zacks industries, indicating strong prospects [8] - The industry's earnings estimates for the current year have increased by 14.4% over the past year, reflecting positive analyst sentiment [9] - Over the past year, the industry has underperformed the S&P 500, rising 13.7% compared to the S&P 500's 36.6% growth [11] Valuation - The industry is currently trading at a forward P/E of 15.42X, compared to the S&P 500's 22.43X, indicating potential undervaluation [12] Notable Companies - **PDD Holdings**: A multinational commerce group with a strong e-commerce business model, showing a 16.2% increase in shares over the past year and a 0.5% upward revision in 2024 earnings estimates [12][13] - **Federal Signal Corporation**: This company has seen a 38.9% increase in shares over the past year, benefiting from strong aftermarket demand and effective pricing actions [14][15]

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Federal Signal (FSS) identified as a strong candidate due to its favorable growth metrics and Zacks Rank [1][2]. Earnings Growth - Federal Signal has a historical EPS growth rate of 12.7%, but projected EPS growth for this year is significantly higher at 26.1%, outperforming the industry average of 11.1% [5]. Cash Flow Growth - The company exhibits a year-over-year cash flow growth of 24%, which is substantially above the industry average of -7.7%. Additionally, its annualized cash flow growth rate over the past 3-5 years stands at 11.8%, compared to the industry average of 9.7% [6][7]. Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Federal Signal, with the Zacks Consensus Estimate for the current year increasing by 3.5% over the past month, indicating favorable market sentiment [9]. Overall Assessment - Federal Signal has achieved a Growth Score of B and a Zacks Rank of 2, suggesting it is a solid choice for growth investors and a potential outperformer in the market [10].

Core Viewpoint - Federal Signal (FSS) is experiencing significant selling pressure, having declined 11% over the past four weeks, but is now positioned for a potential trend reversal as it is in oversold territory and analysts expect better earnings than previously predicted [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) for FSS is at 25.86, indicating that heavy selling may be exhausting itself, suggesting a possible bounce back towards previous supply and demand equilibrium [3]. - A stock is generally considered oversold when its RSI falls below 30, which can signal potential entry opportunities for investors looking for a rebound [2]. Group 2: Fundamental Indicators - There is a strong consensus among sell-side analysts that earnings estimates for FSS have increased by 3.5% over the last 30 days, indicating a positive outlook for the company's earnings [4]. - FSS holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a near-term turnaround [4].

Financial Performance - Net sales for the three months ended September 30, 2024 increased by $27.8 million, or 6%, compared to the prior-year quarter, driven by higher sales volumes and pricing actions[115]. - Operating income for the three months ended September 30, 2024 increased by $13.4 million, or 21%, with a consolidated operating margin of 16.0%, compared to 14.0% in the prior-year quarter[116]. - Net income for the three months ended September 30, 2024 increased by $10.6 million, with an effective tax rate of 25.8%, compared to 24.2% in the prior-year quarter[118]. - Net sales for the nine months ended September 30, 2024 increased by $115.2 million, or 9%, compared to the prior-year period, primarily due to higher sales volumes and acquisitions[125]. - Income before income taxes for the nine months ended September 30, 2024 increased by $56.5 million, or 39%, compared to the prior-year period[117]. - Operating income for the nine months ended September 30, 2024 increased by $49.9 million, or 31%, with a consolidated operating margin of 15.2%, up from 12.7% in the prior-year period[130]. - Net income for the three months ended September 30, 2024, increased by $10.6 million compared to the prior-year quarter, largely due to higher pre-tax income levels[138]. Sales and Orders - The Environmental Solutions Group reported a net sales increase of $25.2 million, or 7%, primarily due to increases in sales of dump truck bodies, sewer cleaners, and street sweepers[115]. - Total orders for the three months ended September 30, 2024 were $426 million, a reduction of $24 million, or 5%, compared to the prior-year quarter[120]. - Total orders for the three months ended September 30, 2024, decreased by $22.1 million, or 6%, compared to the prior-year quarter[140]. - U.S. sales increased by $84.8 million, with significant contributions from metal extraction support equipment and dump truck bodies, among others[146]. - Net sales for the nine months ended September 30, 2024 increased by $96.2 million, or 9%, compared to the prior-year period, driven by higher sales volumes and pricing actions[146]. Profitability and Margins - Gross profit increased by $22.7 million, or 19%, for the three months ended September 30, 2024, with a gross profit margin of 29.6%, up from 26.4% in the prior-year quarter[128]. - Gross profit margin for the three months ended September 30, 2024, was 27.1%, compared to 24.2% in the prior-year quarter, attributed to improved operating leverage and favorable sales mix[143]. - Gross profit margin for the nine months ended September 30, 2024 was 26.2%, an improvement from 23.4% in the prior-year period, attributed to higher sales volumes and favorable sales mix[147][148]. - Operating income for the nine months ended September 30, 2024 increased by $45.1 million, or 30%, largely due to a $54.6 million improvement in gross profit[150]. Expenses - SEG&A expenses increased by $9.5 million, or 19%, for the three months ended September 30, 2024, representing 12.7% of net sales compared to 11.3% in the prior-year quarter[129]. - SEG&A expenses for the nine months ended September 30, 2024 increased by $9.4 million, or 11%, primarily due to costs from acquired businesses and increased marketing expenses[149]. - Corporate operating expenses for the nine months ended September 30, 2024 were $33.7 million, an increase from $29.5 million in the prior-year period, mainly due to higher stock compensation expenses[162]. Cash Flow and Capital Expenditures - Net cash provided by operating activities was $140.7 million for the nine months ended September 30, 2024, compared to $91.0 million in the prior-year period[167]. - Capital expenditures for the nine months ended September 30, 2024 totaled $32.1 million, with a projected range of $35 million to $40 million for the full year[168][170]. Backlog and Future Outlook - Consolidated backlog at September 30, 2024 was $1.03 billion, an increase of $27 million, or 3%, compared to the prior-year quarter[122]. - Backlog was $980 million at September 30, 2024, compared to $939 million at September 30, 2023, indicating strong future demand[150]. - The company anticipates that its financial resources will be adequate to meet its operating needs and capital commitments[171]. Risk and Obligations - No material changes in the Company's contractual obligations and off-balance sheet arrangements during the nine months ended September 30, 2024[172]. - No significant changes in the Company's exposure to market risk during the nine months ended September 30, 2024[173].

Federal Signal (FSS) came out with quarterly earnings of $0.88 per share, beating the Zacks Consensus Estimate of $0.82 per share. This compares to earnings of $0.71 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 7.32%. A quarter ago, it was expected that this company that makes products ranging from street sweepers to toll booth technology for government, industrial and commercial customers would post earnings of $0.84 per s ...

Core Points - Federal Signal Corporation will announce its third quarter earnings on October 31, 2024, before the market opens [1] - An investor conference call and webcast will be held on the same day at 10 a.m. Eastern Time, featuring the CEO and CFO [1] - The company is a leader in environmental and safety solutions, serving various sectors including municipal, governmental, industrial, and commercial [3] Company Overview - Federal Signal Corporation, founded in 1901, is headquartered in Downers Grove, Illinois, and operates globally with manufacturing facilities [3] - The company specializes in designing, manufacturing, and supplying high-quality equipment for moving materials, cleaning infrastructure, and community protection [3] - Federal Signal operates two main groups: Environmental Solutions and Safety and Security Systems [3]

Core Viewpoint - Federal Signal Corporation has completed the acquisition of Standard Equipment Company, enhancing its aftermarket growth strategy and expanding its operational capabilities in the municipal and industrial markets [1][3][4]. Company Overview - Federal Signal Corporation is a leader in environmental and safety solutions, providing high-quality equipment for municipal, governmental, industrial, and commercial customers [6]. - Founded in 1901 and headquartered in Downers Grove, Illinois, the company operates two main groups: Environmental Solutions and Safety and Security Systems [6]. Acquisition Details - The acquisition includes an initial purchase price of $38.8 million, with a potential earn-out payment of up to $4.8 million based on financial performance [4]. - The transaction closed on October 4, 2024, and is expected to be accretive to earnings and cash flow in 2025 [5]. Strategic Implications - The acquisition of Standard Equipment enhances Federal Signal's existing aftermarket platform, allowing for increased scale and capabilities in parts, services, rental, and used equipment operations [4]. - It also enables the company to target new customer segments and expand its geographic footprint, leveraging additional product lines in the long term [4].