Core Insights - Franklin Electric Co., Inc. reported its fourth quarter and full year financial results for fiscal year 2024, highlighting a solid finish despite challenges faced throughout the year [1][4]. Financial Performance - Fourth quarter 2024 net sales were $485.7 million, a 3% increase from $473.0 million in the fourth quarter of 2023 [2][9]. - Operating income for the fourth quarter 2024 was $43.0 million, down from $50.8 million in the same quarter of 2023 [2][9]. - Full year 2024 net sales totaled $2.0 billion, a decrease of 2% compared to $2.1 billion in 2023 [3][9]. - Full year 2024 operating income was $243.6 million, down from $262.4 million in 2023 [3][9]. - Fourth quarter 2024 EPS was $0.72, compared to $0.82 in the fourth quarter of 2023 [2][9]. - Full year 2024 EPS was $3.86, down from $4.11 in 2023 [3][9]. Segment Performance - Water Systems segment net sales were $279.6 million in the fourth quarter, flat compared to the same period in 2023, with operating income decreasing from $44.1 million to $35.6 million [6][25]. - Distribution segment net sales increased by $9.2 million or 6% to $157.2 million, with operating income declining from $1.0 million to $0.5 million [7][25]. - Energy Systems segment net sales rose by $3.1 million or 5% to $68.8 million, achieving a record operating income of $24.7 million, up from $19.4 million in the previous year [8][25]. Cash Flow and Balance Sheet - The company ended 2024 with a cash balance of $220.5 million, an increase of $135.5 million compared to the end of 2023 [9][21]. - Net cash flows from operating activities for 2024 were $261.4 million, down from $315.7 million in 2023 [9][10]. Future Outlook - For full year 2025, the company expects sales to be in the range of $2.09 billion to $2.15 billion and EPS to be between $4.05 and $4.25 [11]. Strategic Commentary - The CEO noted that the company is well-positioned to capitalize on opportunities in 2025, focusing on revenue growth and margin expansion while continuing to execute productivity initiatives [4][5].

Core Insights - Franklin Electric Co., Inc. has signed a definitive agreement to acquire Barnes de Colombia S.A., enhancing its growth and diversification strategy in Latin America [1][3] - The acquisition is expected to close around March 1, 2025, pending customary closing conditions including Colombian antitrust clearance [4] Company Overview - Franklin Electric is a global leader in the production and marketing of systems and components for the movement of water and energy, serving various sectors including residential, commercial, agricultural, industrial, municipal, and fueling applications [6] - The company has been recognized in multiple lists for its responsible business practices and environmental leadership [6] Acquisition Details - Barnes de Colombia is a leading manufacturer and distributor of industrial and commercial pumps, with operations in Colombia and other Latin American countries [2][3] - The acquisition will enhance Franklin Electric's product portfolio and market presence in key Latin American regions, leveraging Barnes de Colombia's distribution network and customer relationships [3][4] - Barnes de Colombia operates under the WDM brand in certain countries, and has manufacturing facilities in Colombia and assembly facilities in Mexico, Brazil, and Argentina [2] Strategic Goals - The acquisition aligns with Franklin Electric's strategic goals of diversifying its product line and enhancing supply chain resilience [3] - The integration of Barnes de Colombia's approximately 400 team members and manufacturing capabilities is expected to materially enhance Franklin Electric's operational footprint [4]

Core Viewpoint - The market anticipates a year-over-year decline in Franklin Electric's earnings due to lower revenues, with a focus on how actual results will compare to these estimates [1][3]. Earnings Expectations - Franklin Electric is expected to report quarterly earnings of $0.69 per share, reflecting a year-over-year decrease of 15.9% [3]. - Revenue projections stand at $465 million, which is a decline of 1.7% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 1.89% over the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][10]. - The Most Accurate Estimate is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.45% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from the consensus estimate, but it is more reliable for positive readings [6][7]. - Stocks with a positive Earnings ESP and a strong Zacks Rank have historically shown a nearly 70% chance of delivering a positive surprise [8]. Historical Performance - In the last reported quarter, Franklin Electric was expected to post earnings of $1.30 per share but only achieved $1.17, resulting in a surprise of -10% [12]. - The company has not beaten consensus EPS estimates in any of the last four quarters [13]. Conclusion - Franklin Electric does not appear to be a strong candidate for an earnings beat, and investors should consider other factors when making decisions regarding this stock ahead of its earnings release [16].

Group 1 - Franklin Electric Co., Inc. will release its fourth quarter and fiscal year 2024 earnings on February 18, 2025, at 8:00 am ET [1] - A conference call to discuss the earnings and business developments will start at 9:00 am ET on the same day, available via a live webcast [1] - Participants interested in the Q&A portion of the call must register in advance to receive dial-in information and a PIN [3] Group 2 - A replay of the conference call will be accessible from February 18, 2025, through February 25, 2025 [4] - Franklin Electric is recognized as a global leader in the production and marketing of systems and components for the movement of water and energy, serving various sectors including residential, commercial, agricultural, and industrial [5] - The company has been acknowledged in Newsweek's lists of America's Most Responsible Companies and Most Trustworthy Companies for 2024, as well as America's Climate Leaders 2024 by USA Today [5]

FORT WAYNE, Ind., Jan. 27, 2025 (GLOBE NEWSWIRE) -- Franklin Electric Co., Inc. (NASDAQ: FELE) announced today that its Board of Directors declared a quarterly cash dividend of $0.265 per share payable February 20, 2025, to shareholders of record on February 6, 2025. This represents a 6 percent increase from the prior quarterly dividend. This dividend will mark the 33rd consecutive year that Franklin Electric has increased its dividend, demonstrating its commitment to returning cash to shareholders and conf ...

Financial Data and Key Metrics Changes - Consolidated third quarter sales were $531.4 million, a year-over-year decrease of 1% [25] - Consolidated gross profit was $189.7 million, a 2% year-over-year increase, with a gross profit margin of 35.7%, up 110 basis points from the prior year [26] - Fully diluted earnings per share were $1.17 for Q3 2024, down from $1.23 in Q3 2023 [24] Business Line Data and Key Metrics Changes - Water Systems sales in the US and Canada increased by 1%, with groundwater funding equipment sales up 13% and water treatment products up 9% [29] - Fueling Systems sales decreased by 10% year-over-year, with a notable decline in international sales [33] - Distribution segment sales were $190.8 million, an increase of 1% year-over-year, driven by recent acquisitions [32] Market Data and Key Metrics Changes - Sales in markets outside the US and Canada increased by 4%, although foreign currency translation decreased sales by 4% [30] - The overall demand environment remains healthy across core businesses, despite pressures from macro trends such as low housing starts and unfavorable weather [6][13] Company Strategy and Development Direction - The company aims to increase enterprise efficiency while accelerating innovation and growth, focusing on critical water needs in growing markets [11] - There is an emphasis on addressing customer intimacy and service quality as a differentiator in the market [9][10] - The company is taking actions to reduce costs and improve productivity, with restructuring activities expected to incur one-time charges of $3 million to $5 million [39][88] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that third quarter results were below expectations but expressed optimism about overcoming macroeconomic headwinds [41] - The company is cautiously optimistic about 2025, anticipating some relief from current challenges [54] - Management noted that the effective tax rate increased to 23.6% for the quarter, impacting earnings per share [35] Other Important Information - The company ended Q3 2024 with a cash balance of $106.3 million and no borrowings under its revolving credit agreement [36] - A quarterly cash dividend of $0.25 was announced, payable on November 21 [37] Q&A Session Summary Question: Can you provide more detail on Q4 expectations by segment? - Management indicated that Q4 expectations are similar to Q3, with strength in US businesses but pressure outside the US due to economic conditions [43][47] Question: What is the impact of SG&A costs? - SG&A costs increased due to CEO transition and acquisitions, with a total impact of approximately $3 million to $3.5 million for the CEO transition and around $6 million for acquisitions [64][66] Question: How are inventory levels and pricing being managed? - Inventory levels are normalized, and pricing in the Water Systems business is positive, while commodity pricing has seen declines [71][73] Question: What is the outlook for the fueling business? - The US fueling business remains stable, while international markets face more challenges; labor constraints are a concern for build-outs [83][86] Question: Can you elaborate on the restructuring efforts? - Restructuring efforts are focused on lowering discretionary costs and optimizing the manufacturing and distribution footprint [88][89]

Franklin Electric (FELE) came out with quarterly earnings of $1.17 per share, missing the Zacks Consensus Estimate of $1.30 per share. This compares to earnings of $1.23 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -10%. A quarter ago, it was expected that this water and fuel pumping systems company would post earnings of $1.30 per share when it actually produced earnings of $1.26, delivering a surprise of -3.08%. Over the ...

Third Quarter 2024 Highlights Consolidated net sales of $531.4 million, a decrease of 1% to the prior year Water Systems and Distribution net sales increased 2% and 1%, respectively, while Fueling Systems net sales decreased 10% Operating income was $73.5 million with operating margin of 13.8% GAAP fully diluted earnings per share (EPS) was $1.17 FORT WAYNE, Ind., Oct. 29, 2024 (GLOBE NEWSWIRE) -- Franklin Electric Co., Inc. today announced its third quarter financial results for fiscal year 2024. Third qua ...

FORT WAYNE, Ind., Oct. 15, 2024 (GLOBE NEWSWIRE) -- Franklin Electric Co., Inc. (NASDAQ: FELE) will release its third quarter 2024 earnings at 8:00 am ET on Tuesday, October 29, 2024. A conference call to review earnings and other developments in the business will commence at 9:00 am ET. The third quarter 2024 earnings call will be available via a live webcast. The webcast will be available in a listen-only mode by going to: https://edge.media-server.com/mmc/p/cp5pmtx9 For those interested in participating ...

Investors with an interest in Manufacturing - Electronics stocks have likely encountered both Emerson Electric (EMR) and Franklin Electric (FELE) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look. Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnin ...