NASDAQ$FELE

Franklin Electric Co Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Franklin Electric reported record sales for the fourth quarter of 2020, with organic sales growth in the Distribution and Water Systems segments, and completed the Gicon Pumps and Equipment acquisition.

Franklin Electric announced record fourth quarter 2020 sales of $321.1 million, driven by organic growth in the Distribution and Water Systems segments. The company's GAAP earnings per share was $0.57, and operating income reached $34.4 million, a 20% increase from the prior year. Full year 2020 sales were $1,247.3 million and GAAP earnings per share was $2.14.

  • Record sales of $321.1 million in the fourth quarter 2020.
  • Distribution and Water Systems experienced organic sales growth of 21% and 4%, respectively.
  • Gross profit margin increased by 300 basis points.
  • GAAP operating income increased 20% to $34.4 million.

Headline financials

Total Revenue

$321M

Previous: $320M+0.3%
EPS (adj)

$0.57

Previous: $0.43+32.6%
Operating Margin

10.7%

Previous: 8.9%+20.2%
Capital Expenditures

$7.62M

Previous: $6.26M+21.6%
Free Cash Flow

$189M

Previous: $156M+21.3%
Net Income

$27M

Previous: $20M+35.0%
Operating Income

$34.4M

Previous: $28.6M+20.2%
Gross Profit

$111M

Previous: $101M+10.0%
Cash & Equivalents

$131M

Previous: $64.4M+103.1%
Total Assets

$1.27B

Previous: $1.19B+6.5%
Stock-Based Comp

$1.75M

Previous: $1.5M+17.1%

Revenue & EPS history

Franklin Electric · Revenue · Quarterly

$321M

Q4 2020+0.3%vs Q4 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Franklin Electric · $333M total across 3 segments · Q4 2020

  • Water Systems
    $189M+0.6%
  • Distribution
    $77.9M+21.0%
  • Energy Systems
    $65.5M-15.3%

Forward guidance

The Company expects its full year 2021 sales to be in the range of $1.365 billion to $1.395 billion and full year 2021 earnings per share before restructuring expenses to be in the range from $2.50 to $2.75. The Company expects full year 2021 free cash flow conversion to exceed 115 percent of net income.

Tailwinds

  • Full year 2021 sales to be in the range of $1.365 billion to $1.395 billion
  • Full year 2021 earnings per share before restructuring expenses to be in the range from $2.50 to $2.75
  • Full year 2021 free cash flow conversion to exceed 115 percent of net income

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 2020

Historical avgQ4 2020

-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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