It's been a pretty great week for Federal Signal Corporation (NYSE:FSS) shareholders, with its shares surging 15% to US$86.58 in the week since its latest quarterly results. The result was positive overall - although revenues of US$464m were in line with what the analysts predicted, Federal Signal surprised by delivering a statutory profit of US$0.75 per share, modestly greater than expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the current consensus from Federal Signal's seven analysts is for revenues of US$2.05b in 2025. This would reflect an okay 8.0% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 9.2% to US$3.80. Before this earnings report, the analysts had been forecasting revenues of US$2.05b and earnings per share (EPS) of US$3.76 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

Check out our latest analysis for Federal Signal

The analysts reconfirmed their price target of US$103, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Federal Signal at US$115 per share, while the most bearish prices it at US$82.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Federal Signal shareholders.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 11% growth on an annualised basis. That is in line with its 12% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 3.8% per year. So it's pretty clear that Federal Signal is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$103, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Federal Signal. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Federal Signal going out to 2026, and you can see them free on our platform here..

You can also view our analysis of Federal Signal's balance sheet, and whether we think Federal Signal is carrying too much debt, for free on our platform here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.