Federal Signal reports 18% sales growth and raises earnings outlook

Federal Signal reported third-quarter sales of 656 million dollars on 29 October, up 18% from a year earlier. Operating income increased 19% to 111.4 million dollars, and net income reached 79.6 million dollars, or 1.29 dollars per diluted share.

Adjusted diluted earnings were 1.34 dollars per share, compared with 1.14 dollars a year before. New orders increased 33% to 620 million dollars, while the backlog at 30 September was 967 million dollars, compared with 992 million dollars a year earlier. Orders received during a quarter and the backlog remaining at its end measure different things.

Quarterly operating cash flow rose 50% to 91 million dollars. The environmental and safety equipment company raised its full-year adjusted earnings guidance to 5.20–5.32 dollars per share, from 5.12–5.30 dollars. The forecast is a non-GAAP management outlook; the completed quarter’s reported earnings and cash flow are separate measures.