Federal Signal shares surged 4.1% to close at $118.52 after the company agreed to acquire select assets and operations of Western Technology. The deal expands Federal Signal's industrial signaling portfolio into portable explosion-protected lighting for hazardous applications, and the company expects to drive synergies through expanded sales channels, improved manufacturing efficiencies, and accelerated new product development. The stock's gain came on higher-than-average trading volume and compares to a 1.4% increase over the past four weeks. Federal Signal is expected to report quarterly earnings of $1.28 per share, a 9.4% year-over-year increase, on revenues of $669.78 million, up 18.6% from the year-ago quarter. The consensus EPS estimate has remained unchanged over the last 30 days, and the stock carries a Zacks Rank of 2, or Buy.
Federal Signal CorporationAcquisition of Western Technology assets expands portfolio and is expected to drive synergies.
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