Heavy Transportation Equipment Stocks Q4 In Review: Federal Signal (NYSE:FSS) Vs Peers
Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let’s have a look at Federal Signal (NYSE:FSS) and its peers.
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 14 heavy transportation equipment stocks we track reported a mixed Q4. As a group, revenues were in line with analysts’ consensus estimates.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 17.9% since the latest earnings results.
Federal Signal (NYSE:FSS)
Developing sirens that warned of air raid attacks or fallout during the Cold War, Federal Signal (NYSE:FSS) provides safety and emergency equipment for government agencies, municipalities, and industrial companies.
Federal Signal reported revenues of $472 million, up 5.3% year on year. This print fell short of analysts’ expectations by 2.4%. Overall, it was a slower quarter for the company with a significant miss of analysts’ adjusted operating income estimates and a miss of analysts’ backlog estimates.
"Our record-setting fourth quarter performance represented a strong finish to a year in which we delivered the highest net sales and adjusted EPS in our history," commented Jennifer L. Sherman, President and Chief Executive Officer.
Federal Signal Total Revenue
The stock is down 15.8% since reporting and currently trades at $76.43.
Offering the first full-electric North American fire truck, REV (NYSE:REVG) manufactures and sells specialty vehicles.
REV Group reported revenues of $525.1 million, down 10.4% year on year, outperforming analysts’ expectations by 6.5%. The business had an incredible quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
REV Group Total Revenue
The market seems happy with the results as the stock is up 11.8% since reporting. It currently trades at $30.51.
Having designed the industry’s first double-decker railcar in the 1980s, Greenbrier (NYSE:GBX) supplies the freight rail transportation industry with railcars and related services.
Greenbrier reported revenues of $762.1 million, down 11.7% year on year, falling short of analysts’ expectations by 15.2%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations.
Greenbrier delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. As expected, the stock is down 10.3% since the results and currently trades at $40.13.
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 $2.62 billion, up 6.3% year on year. This print surpassed analysts’ expectations by 8.6%. Overall, it was an exceptional quarter as it also recorded an impressive beat of analysts’ EBITDA estimates.
Oshkosh scored the biggest analyst estimates beat among its peers. The stock is down 12.2% since reporting and currently trades at $84.06.
Helping build race cars at one point, Allison Transmission (NYSE:ALSN) offers transmissions to original equipment manufacturers and fleet operators.
Allison Transmission reported revenues of $796 million, up 2.7% year on year. This result topped analysts’ expectations by 1.4%. Taking a step back, it was a slower quarter as it logged full-year revenue guidance missing analysts’ expectations.
The stock is down 22% since reporting and currently trades at $89.03.
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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