NASDAQ$FELE

Franklin Electric Co Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Reported fourth quarter sales and earnings.

Franklin Electric reported a 1% increase in fourth quarter sales to $320.1 million compared to $316.7 million in 2018. GAAP EPS was $0.42, down from $0.51 in the previous year. The company's free cash flow conversion of net income increased from 101% to 163% year-over-year.

  • Fourth quarter sales increased by 1 percent year-over-year.
  • GAAP EPS decreased to $0.42 compared to $0.51 in the fourth quarter of 2018.
  • Free cash flow conversion of net income improved significantly, from 101 percent to 163 percent.
  • Operating income remained flat compared to the same quarter last year.

Headline financials

Total Revenue

$320M

Previous: $317M+1.1%
EPS (adj)

$0.43

Previous: $0.52-17.3%
Operating Margin

8.9%

Previous: 9.1%-2.2%
Capital Expenditures

$6.26M

Previous: $7.32M-14.5%
Free Cash Flow

$156M

Previous: $60.7M+156.6%
Net Income

$20M

Previous: $24M-16.7%
Operating Income

$28.6M

Previous: $28.7M-0.3%
Gross Profit

$101M

Previous: $104M-3.0%
Cash & Equivalents

$64.4M

Previous: $59.2M+8.8%
Total Assets

$1.19B

Previous: $1.18B+1.0%
Stock-Based Comp

$1.5M

Previous: $1.82M-17.8%

Revenue & EPS history

Franklin Electric · Revenue · Quarterly

$320M

Q4 2019+1.1%vs Q4 2018
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Franklin Electric · $330M total across 3 segments · Q4 2019

  • Water Systems
    $188M-4.4%
  • Energy Systems
    $77.3M+3.1%
  • Distribution
    $64.4M+15.0%

Forward guidance

Franklin Electric anticipates earnings growth and sustained operating cash generation exceeding net income, alongside organic growth in Water Systems and Distribution segments. Fueling Systems revenue is expected to be flat due to a decline in China.

Tailwinds

  • More normal North America precipitation rates than the record levels seen in 2019
  • Organic Growth, net of foreign exchange, of about 5 to 7 percent in Water Systems and Distribution, but flat in Fueling Systems
  • Free Cash Flow conversion of net income between 120 percent and 140 percent
  • An effective tax rate between 18 and 20 percent
  • Capital spending of around $30 million and Depreciation and Amortization of around $38 million

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2019

Historical avgQ4 2019

-0.6%

Avg return

Earnings day

-1.0%

Avg return

5 days after

-0.4%

Avg return

30 days after

37%

24 / 65 earnings

Positive

+22.0%

Q3 2015

Best reaction

-14.6%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.5%-3.9%-4.4%
Q4 2025-14.6%-12.0%-16.1%
Q3 2025-3.5%-3.8%-2.4%
Q1 2025-4.4%-0.3%-2.3%
Q4 2024+6.0%+4.3%-2.0%
Q3 2024-5.9%-4.9%+4.5%
Q2 2024-3.1%+1.9%-3.9%
Q1 2024-5.5%-4.2%-5.4%
Q4 2023-2.0%+0.3%+1.0%
Q3 2023-0.0%-0.2%+6.3%
Q2 2023-7.1%-8.6%-10.8%
Q1 2023+5.8%+5.3%+1.3%
Q4 2022+3.6%+4.4%-2.1%
Q3 2022-5.5%-6.7%-3.2%
Q2 2022+9.0%+14.6%+17.2%
Q1 2022-10.0%-12.6%-9.2%
Q4 2021+2.0%-0.7%-0.4%
Q3 2021-3.0%-1.2%+9.0%
Q2 2021-2.9%-0.9%+0.6%
Q1 2021-0.1%-0.1%+3.6%
Q4 2020-0.4%-1.6%+6.6%
Q3 2020-5.5%-4.3%+9.3%
Q2 2020+5.3%-0.1%+10.0%
Q1 2020+5.6%-3.9%+1.5%
Q4 2019-2.6%-2.5%-20.8%
Q3 2019+5.7%+3.3%+5.9%
Q2 2019+2.5%+3.2%-0.1%
Q1 2019-7.3%-7.2%-13.9%
Q4 2018+7.6%+8.4%+2.5%
Q3 2018+2.0%+4.2%+7.2%
Q2 2018+0.0%+1.7%+3.3%
Q1 2018+5.2%+6.8%+12.8%
Q4 2017-8.1%-8.1%-7.8%
Q3 2017-1.7%+2.4%+2.0%
Q2 2017-4.4%-5.0%-9.7%
Q1 2017-8.2%-11.7%-15.9%
Q4 2016+5.9%+5.5%+0.7%
Q3 2016-6.8%-4.7%+3.5%
Q2 2016+6.5%+4.3%+5.0%
Q1 2016+3.0%
Q4 2015-0.9%
Q3 2015+22.0%
Q2 2015+3.6%
Q1 2015-6.2%
Q4 2014+4.2%
Q3 2014-6.2%
Q2 2014-2.9%
Q1 2014-2.7%
Q4 2013+6.5%
Q3 2013-2.7%
Q2 2013-0.4%
Q1 2013-3.5%
Q4 2012-3.4%
Q3 2012+2.1%
Q2 2012-4.4%
Q1 2012-1.9%
Q4 2011-1.3%
Q3 2011-4.0%
Q2 2011+1.0%
Q4 2009+2.0%
Q1 2011+1.1%
Q3 2010-1.3%
Q2 2010-0.4%
Q4 2010-0.4%
Q1 2010+0.7%

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