FELE Earnings Prediction
The chart below shows how FELE performed 10 days before and after its earnings report, based on data from the past quarters. Typically, FELE sees a +0.30% change in stock price 10 days leading up to the earnings, and a +0.97% change 10 days following the report. On the earnings day itself, the stock moves by -1.57%. This data can give you a slight idea of what to expect for the next quarter's release.
FELE Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
485.75M
2.70%
-8.60%
Gross Margin
33.81%
-0.06%
-5.27%
Operating Margin
9.55%
-11.74%
-31.10%
Net Margin
7.06%
-14.01%
-31.66%
EPS
0.71
-13.41%
-39.83%
No Data Available
FELE Earnings Analysis
Franklin Electric Co Inc Corporation (FELE.O) Earnings Conference Call
Positive
Earnings Per Share Beat: Franklin Electric Co., Inc. reported an EPS of $0.72, exceeding expectations of $0.69, indicating strong financial performance.
Fourth Quarter Sales Increase: Consolidated fourth quarter sales totaled $486 million, reflecting a 3% increase over the prior year, driven by growth in distribution and energy systems segments.
Record Operating Margin Achievement: The energy systems segment achieved a record operating margin for 2024, showcasing effective cost management and operational efficiency.
Strategic Acquisitions Expansion: The company completed strategic acquisitions, including a water systems business in Australia and a company in Latin America, enhancing its portfolio and market presence.
Distribution Segment Growth: The distribution segment grew mid-single digits in the fourth quarter, supported by favorable volumes and contributions from acquisitions.
Dividend Increase Announcement: Franklin Electric Co., Inc. announced a 6% increase in the quarterly cash dividend, marking the 33rd consecutive year of dividend increases, demonstrating commitment to returning cash to shareholders.
Strong Cash Flow Generation: The company generated $261.4 million in net cash flows from operations in 2024, with a strong free cash flow conversion of 122%, indicating robust financial health.
Sales Forecast 2025: The company expects full-year 2025 sales to be in the range of $2.09 billion to $2.15 billion, reflecting optimism about future growth opportunities.
Negative
Operating Margin Decline: Operating margins for the quarter were 9%, down from the prior year, reflecting global FX headwinds, pricing pressure, and unfavorable geographic and product mix in the water systems segment.
Restructuring Expense Impact: Restructuring charges of over $3 million negatively impacted earnings, with restructuring expenses increasing from $0.4 million in 2023 to $3.4 million in 2024.
Earnings Per Share Decline: Fully diluted earnings per share were $0.72 for Q4 2024, down from $0.82 in Q4 2023, indicating a decline in profitability year-over-year.
Water System Sales Decline: Water system sales in the US and Canada were down 2% compared to the fourth quarter of 2023, with large dewatering equipment sales decreasing by 36%.
Distribution Segment Decline: Distribution segment's operating income decreased by $0.5 million year-over-year, with an operating income margin of only 0.3% in Q4 2024, down from 0.7% in the prior year.
Energy Systems Sales Decline: Energy systems segment sales were down 8% for the full year, despite a strong fourth quarter, indicating a challenging year overall.
SG&A Expense Increase: SG&A expenses increased to $117.8 million in Q4 2024 from $108.8 million in Q4 2023, primarily due to higher employee compensation costs and acquisition-related expenses.
FELE FAQs
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FELE Earning Call Sentiment
Franklin Electric Co., Inc. (NASDAQ:FELE) Q4 2024 Earnings Call Transcript
FELE.O
1.88%Positive
The earnings call reveals mixed financial results with declining EPS and operating income, despite a slight sales increase. Lower guidance for 2024 and restructuring costs add to concerns. While a dividend increase is positive, the lack of share repurchases and unfavorable geographic mix are worrying. The Q&A section highlights limited growth expectations and FX headwinds. The market cap suggests moderate volatility, leading to a predicted stock price decline of -2% to -8%.
