Franklin Electric Reports Strong Quarterly Earnings, Surpassing Analyst Expectations

On Tuesday, Franklin Electric (NASDAQ:FELE) announced its quarterly earnings results. The industrial products company reported earnings per share (EPS) of $0.72, which exceeded analysts' expectations of $0.69 by $0.03, according to reports from Zacks. Franklin Electric also noted a net margin of 9.22% and a return on equity of 15.03%. Furthermore, the company updated its guidance for fiscal year 2025, predicting EPS in the range of $4.050 to $4.250.

Stock Performance

On the day of the earnings report, Franklin Electric's stock opened at $108.13, reflecting an increase of 7.2%. Over the past year, the stock has seen a low of $91.67 and reached a high of $111.94. Franklin Electric has a market capitalization of approximately $4.94 billion, a price-to-earnings ratio of 25.34, and a PEG ratio of 1.97. The company's current ratio is 2.40, quick ratio is 1.06, and debt-to-equity ratio is a very low 0.01. The 50-day moving average price stands at $99.39, while the 200-day moving average price is at $101.54.

Dividend Increase

In conjunction with the earnings announcement, Franklin Electric declared an increase in its quarterly dividend. Shareholders of record as of February 6 will receive a dividend of $0.265, which translates to an annualized dividend of $1.06 and a yield of 0.98%. This increase reflects a change from the previous quarterly dividend of $0.25. The upcoming ex-dividend date is also set for February 6, and currently, the company's dividend payout ratio is 26.84%.

Analysts' Insights

In related news, Robert W. Baird adjusted its price target for Franklin Electric shares, lowering it from $107.00 to $105.00, while maintaining a "neutral" rating for the stock.

About Franklin Electric

Franklin Electric Co, Inc., along with its subsidiaries, is known for designing, manufacturing, and distributing water and fuel pumping systems across the globe. The company's operations are divided into three segments: Water Systems, Fueling Systems, and Distribution. The Water Systems segment offers a wide range of products, including submersible motors, drives, pumps, electronic controls, water treatment systems, monitoring devices, and various related parts.

Earnings, Dividend, Stocks