Franklin Electric (NASDAQ:FELE) Updates FY 2025 Earnings Guidance

Key Points

• Franklin Electric issued its FY 2025 earnings guidance, projecting an EPS of 3.950-4.250 and revenue between $2.1 billion to $2.2 billion, slightly above consensus estimates.
• The company announced a quarterly dividend of $0.265 per share, reflecting an annualized dividend yield of 1.10% and a payout ratio of 27.75%.
• Franklin Electric's Board of Directors authorized a stock repurchase program for up to 1,200,000 shares, indicating confidence in the company's stock valuation.

Franklin Electric (NASDAQ:FELE - Get Free Report) updated its FY 2025 earnings guidance on Tuesday. The company provided earnings per share guidance of 3.950-4.250 for the period, compared to the consensus earnings per share estimate of 4.125. The company issued revenue guidance of $2.1 billion-$2.2 billion, compared to the consensus revenue estimate of $2.1 billion.

Analysts Set New Price Targets

Several analysts have issued reports on the company. Wall Street Zen upgraded Franklin Electric from a "hold" rating to a "buy" rating in a research note on Wednesday, May 14th. Robert W. Baird increased their price target on Franklin Electric from $94.00 to $107.00 and gave the stock a "neutral" rating in a research report on Wednesday.

Franklin Electric Stock Performance

Shares of Franklin Electric stock traded down $1.53 on Wednesday, reaching $94.43. 315,230 shares of the company were exchanged, compared to its average volume of 227,594. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.82 and a current ratio of 1.72. The company's 50-day moving average is $89.01 and its two-hundred day moving average is $93.05. The firm has a market cap of $4.31 billion, a price-to-earnings ratio of 24.40, a P/E/G ratio of 1.95 and a beta of 1.07. Franklin Electric has a 1-year low of $78.87 and a 1-year high of $111.94.

Franklin Electric (NASDAQ:FELE - Get Free Report) last posted its earnings results on Tuesday, July 29th. The industrial products company reported $1.31 EPS for the quarter, beating the consensus estimate of $1.28 by $0.03. Franklin Electric had a return on equity of 14.05% and a net margin of 8.71%. The firm had revenue of $587.43 million for the quarter, compared to analysts' expectations of $566.61 million. As a group, research analysts expect that Franklin Electric will post 4.19 earnings per share for the current fiscal year.

Franklin Electric Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, August 21st. Stockholders of record on Thursday, August 7th will be paid a dividend of $0.265 per share. This represents a $1.06 annualized dividend and a dividend yield of 1.12%. The ex-dividend date of this dividend is Thursday, August 7th. Franklin Electric's dividend payout ratio is presently 27.75%.

Franklin Electric announced that its board has initiated a share buyback plan on Friday, June 13th that allows the company to repurchase 1,200,000 shares. This repurchase authorization allows the industrial products company to buy shares of its stock through open market purchases. Stock repurchase plans are usually a sign that the company's leadership believes its shares are undervalued.

Insiders Place Their Bets

In other news, Director David M. Wathen sold 25,000 shares of the stock in a transaction on Tuesday, June 3rd. The stock was sold at an average price of $85.25, for a total value of $2,131,250.00. Following the completion of the sale, the director owned 24,000 shares in the company, valued at $2,046,000. This represents a 51.02% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director David M. Wathen sold 24,000 shares of the stock in a transaction on Wednesday, June 4th. The shares were sold at an average price of $86.10, for a total value of $2,066,400.00. The disclosure for this sale can be found here. Insiders sold 99,402 shares of company stock valued at $8,529,908 in the last 90 days. Corporate insiders own 2.72% of the company's stock.

Institutional Trading of Franklin Electric

Several hedge funds and other institutional investors have recently modified their holdings of the company. NewEdge Advisors LLC raised its holdings in shares of Franklin Electric by 30.6% during the first quarter. NewEdge Advisors LLC now owns 5,760 shares of the industrial products company's stock worth $541,000 after acquiring an additional 1,349 shares in the last quarter. Royal Bank of Canada raised its holdings in Franklin Electric by 81.6% during the first quarter. Royal Bank of Canada now owns 3,997 shares of the industrial products company's stock valued at $375,000 after buying an additional 1,796 shares in the last quarter. United Services Automobile Association bought a new position in Franklin Electric during the first quarter valued at about $243,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in Franklin Electric by 8.6% during 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 valued at $12,877,000 after buying an additional 10,862 shares in the last quarter. Finally, AQR Capital Management LLC raised its holdings in Franklin Electric by 105.5% during the first quarter. AQR Capital Management LLC now owns 25,463 shares of the industrial products company's stock valued at $2,390,000 after buying an additional 13,075 shares in the last quarter. 79.98% of the stock is currently owned by hedge funds and other institutional investors.

About Franklin Electric

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.