Green Light at Federal Signal

Federal Signal(FSS Quote) surged 12% Friday after the company beat second-quarter earnings targets.

The Oak Brook, Ill.-based company lost $1.9 million, or 4 cents a share, for the quarter, compared with a profit of $11.2 million, or 23 cents a share, a year ago.

Excluding a $13.6 million loss associated with the closure of its Leach refuse truck body business, the company posted income of $11.7 million, or 24 cents a share, in the quarter from continuing operations. Analysts polled by Thomson First Call were estimating earnings of 21 cents a share in the most recent quarter.

Second-quarter revenue rose 6.3% from a year ago to $319.3 million, led by a 15.6% increase in revenue from environmental products. Analysts polled by Thomson First Call were estimating revenue of $320.5 million.

For the full-year, the company expects its earnings to grow 10% to 15% on an adjusted basis.

Shares rose $1.55 Friday to $14.92.