Franklin Electric (NASDAQ:FELE) Announces Quarterly Earnings Results

Key Points

• Quarterly Earnings Beat Estimates: Franklin Electric reported earnings per share of $1.31, surpassing the analysts' expectations of $1.28.
• Dividend Announcement: The company declared a quarterly dividend of $0.265 per share, payable on August 21st, with a 1.14% annualized yield.
• Stock Buyback Plan Approved: Franklin Electric's Board of Directors authorized a stock repurchase plan for up to 1.2 million outstanding shares, indicating confidence in the company's stock value.

Franklin Electric (NASDAQ:FELE - Get Free Report) announced its quarterly earnings data on Tuesday. The industrial products company reported $1.31 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.28 by $0.03, Zacks reports. Franklin Electric had a return on equity of 14.05% and a net margin of 8.71%. The business had revenue of $587.43 million for the quarter, compared to analysts' expectations of $566.61 million. Franklin Electric updated its FY 2025 guidance to 3.950-4.250 EPS.

Franklin Electric Price Performance

Shares of NASDAQ FELE traded down $0.80 during midday trading on Friday, hitting $93.15. 313,667 shares of the company's stock were exchanged, compared to its average volume of 271,443. Franklin Electric has a 12-month low of $78.87 and a 12-month high of $111.94. The company has a current ratio of 1.72, a quick ratio of 0.82 and a debt-to-equity ratio of 0.01. The company has a market cap of $4.25 billion, a price-to-earnings ratio of 24.07, a PEG ratio of 1.91 and a beta of 1.07. The business's fifty day moving average price is $89.30 and its two-hundred day moving average price is $93.05.

Franklin Electric Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, August 21st. Stockholders of record on Thursday, August 7th will be given a dividend of $0.265 per share. The ex-dividend date is Thursday, August 7th. This represents a $1.06 annualized dividend and a dividend yield of 1.1%. Franklin Electric's dividend payout ratio is currently 27.75%.

Franklin Electric announced that its Board of Directors has authorized a stock buyback plan on Friday, June 13th that authorizes the company to buyback 1,200,000 outstanding shares. This buyback authorization authorizes the industrial products company to purchase shares of its stock through open market purchases. Stock buyback plans are typically an indication that the company's leadership believes its stock is undervalued.

Insider Activity

In other news, Director David M. Wathen sold 24,000 shares of the business's stock in a transaction dated Wednesday, June 4th. The stock was sold at an average price of $86.10, for a total transaction of $2,066,400.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director David M. Wathen sold 25,402 shares of the business's stock in a transaction dated Monday, June 2nd. The stock was sold at an average price of $85.22, for a total value of $2,164,758.44. Following the transaction, the director directly owned 49,000 shares of the company's stock, valued at $4,175,780. The trade was a 34.14% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 99,402 shares of company stock valued at $8,529,908 in the last three months. 2.72% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the business. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in Franklin Electric by 8.6% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 137,162 shares of the industrial products company's stock worth $12,877,000 after buying an additional 10,862 shares in the last quarter. Jane Street Group LLC boosted its stake in Franklin Electric by 491.0% in the first quarter. Jane Street Group LLC now owns 70,660 shares of the industrial products company's stock worth $6,634,000 after buying an additional 58,705 shares in the last quarter. AQR Capital Management LLC boosted its stake in Franklin Electric by 105.5% in the first quarter. AQR Capital Management LLC now owns 25,463 shares of the industrial products company's stock worth $2,390,000 after buying an additional 13,075 shares in the last quarter. NewEdge Advisors LLC boosted its stake in Franklin Electric by 30.6% in the first quarter. NewEdge Advisors LLC now owns 5,760 shares of the industrial products company's stock worth $541,000 after buying an additional 1,349 shares in the last quarter. Finally, Royal Bank of Canada boosted its stake in Franklin Electric by 81.6% in the first quarter. Royal Bank of Canada now owns 3,997 shares of the industrial products company's stock worth $375,000 after buying an additional 1,796 shares in the last quarter. Hedge funds and other institutional investors own 79.98% of the company's stock.

Analyst Ratings Changes

FELE has been the topic of several analyst reports. Wall Street Zen upgraded Franklin Electric from a "hold" rating to a "buy" rating in a research report on Wednesday, May 14th. Robert W. Baird upped their price target on Franklin Electric from $94.00 to $107.00 and gave the company a "neutral" rating in a research report on Wednesday.

Franklin Electric Company Profile

Franklin Electric Co, Inc, together with its subsidiaries, designs, manufactures, and distributes water and fuel pumping systems worldwide. The company operates through Water Systems, Fueling Systems, and Distribution segments. The Water Systems segment offers submersible motors, drives, pumps, electronic controls, water treatment systems, monitoring devices, and related parts and equipment.