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Reflecting On Heavy Transportation Equipment Stocks’ Q1 Earnings: Federal Signal (NYSE:FSS)


Anthony Lee /
2024/07/10 4:48 am EDT

Let's dig into the relative performance of Federal Signal (NYSE:FSS) and its peers as we unravel the now-completed Q1 heavy transportation equipment earnings season.

Heavy transportation equipment companies are investing in automated vehicles that increase efficiencies and connected machinery that collects actionable data. Some are also developing electric vehicles and mobility solutions to address customers’ concerns about carbon emissions, creating new sales opportunities. Additionally, they are increasingly offering automated equipment that increases efficiencies and connected machinery that collects actionable data. On the other hand, heavy transportation equipment companies are at the whim of economic cycles. Interest rates, for example, can greatly impact the construction and transport volumes that drive demand for these companies’ offerings.

The 10 heavy transportation equipment stocks we track reported a decent Q1; on average, revenues beat analyst consensus estimates by 0.8%. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, and heavy transportation equipment stocks have had a rough stretch, with share prices down 5.2% on average since the previous earnings results.

Federal Signal (NYSE:FSS)

Known for its iconic “Q-Siren” in American fire trucks, Federal Signal (NYSE:FSS) produces emergency vehicle lighting and industrial signaling equipment.

Federal Signal reported revenues of $424.9 million, up 10.2% year on year, in line with analysts' expectations. It was a solid quarter for the company with an impressive beat of analysts' earnings estimates.

"Our businesses were able to deliver double-digit year-over-year net sales and earnings growth, gross margin expansion, and a 250-basis point improvement in adjusted EBITDA margin during the first quarter," commented Jennifer L. Sherman, President and Chief Executive Officer.

Federal Signal Total Revenue

The stock is down 2.1% since reporting and currently trades at $83.42.

We think Federal Signal is a good business, but is it a buy today? Read our full report here, it's free.

Best Q1: Wabtec (NYSE:WAB)

Also known as Wabtec, Westinghouse Air Brake Technologies (NYSE:WAB) provides equipment, systems, and its related software for the railway industry.

Wabtec reported revenues of $2.50 billion, up 13.8% year on year, outperforming analysts' expectations by 4.4%. It was a stunning quarter for the company with an impressive beat of analysts' organic revenue and earnings estimates.

Wabtec Total Revenue

Wabtec scored the highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 6.8% since reporting. It currently trades at $158.55.

Is now the time to buy Wabtec? Access our full analysis of the earnings results here, it's free.

Weakest Q1: Wabash (NYSE:WNC)

Headquartered in Indiana, Wabash National (NYSE:WNC) is a diversified industrial company, mainly producing semi-trailers and liquid transportation systems.

Wabash reported revenues of $515.3 million, down 17% year on year, in line with analysts' expectations. It was a weak quarter for the company with a miss of analysts' earnings and backlog sales estimates.

As expected, the stock is down 17.8% since the results and currently trades at $21.16.

Read our full analysis of Wabash's results here.

Oshkosh (NYSE:OSK)

Oshkosh (NYSE:OSK) manufactures specialty vehicles for the defense, fire, emergency, and commercial industry, operating various brand subsidiaries within each industry.

Oshkosh reported revenues of $2.54 billion, up 12.2% year on year, surpassing analysts' expectations by 2.2%. Looking more broadly, it was an very strong quarter for the company with an impressive beat of analysts' earnings estimates and a solid beat of analysts' backlog sales estimates.

The stock is down 15.7% since reporting and currently trades at $102.3.

Read our full, actionable report on Oshkosh here, it's free.

Allison Transmission (NYSE:ALSN)

Originally making airplane engines during the First World War, Allison Transmission (NYSE:ALSN) now manufactures automatic transmission systems for various industries.

Allison Transmission reported revenues of $789 million, up 6.5% year on year, surpassing analysts' expectations by 2.2%. Looking more broadly, it was a mixed quarter for the company with a decent beat of analysts' earnings estimates but a miss of analysts' North America On-Highway revenue estimates.

The stock is down 7.5% since reporting and currently trades at $74.3.

Read our full, actionable report on Allison Transmission here, it's free.

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