Franklin Electric (NASDAQ:FELE) Shares Gap Down on Disappointing Earnings

Franklin Electric Co., Inc. (NASDAQ:FELE) gapped down before the market opened on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $108.94, but opened at $98.32. Franklin Electric shares last traded at $96.70, with a volume of 125,840 shares.

The industrial products company reported $0.87 earnings per share for the quarter, missing the consensus estimate of $0.89 by ($0.02). Franklin Electric had a net margin of 6.71% and a return on equity of 14.24%. The company had revenue of $506.86 million during the quarter, compared to analysts’ expectations of $516.25 million. During the same quarter last year, the business posted $0.72 earnings per share. The company’s revenue for the quarter was up 4.4% compared to the same quarter last year. Franklin Electric has set its FY 2026 guidance at 4.400-4.600 EPS.

Franklin Electric Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, February 19th. Shareholders of record on Thursday, February 5th will be given a dividend of $0.28 per share. This represents a $1.12 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date is Thursday, February 5th. This is an increase from Franklin Electric’s previous quarterly dividend of $0.27. Franklin Electric’s payout ratio is currently 36.48%.

Key Franklin Electric News

Here are the key news stories impacting Franklin Electric this week:

• Positive Sentiment: Management issued FY‑2026 EPS guidance of $4.40–$4.60 and reiterated a revenue range around $2.17B–$2.24B while emphasizing margin expansion via its “value acceleration” program — a signal that management expects profitable growth over the year. Franklin Electric outlines $2.17B–$2.24B sales guidance
• Positive Sentiment: Company delivered year‑over‑year top‑line growth (Q4 revenue up ~4.4%) and EPS improved versus prior year ($0.87 vs $0.72), showing operational progress despite the quarter’s misses. Q4 results and company release
• Neutral Sentiment: Company released its Q4 slide deck and full earnings‑call transcript/presentation materials — useful for digging into segment trends, margin drivers and management’s playbook. Q4 presentation materials
• Negative Sentiment: Q4 revenue missed consensus ($506.9M reported vs. ~$516.3M expected) and EPS missed by $0.02 ($0.87 vs. $0.89 consensus), which triggered investor selling. Franklin Electric shares tumble on revenue miss, weak guidance
• Negative Sentiment: Market reaction was pronounced (heavy volume and a sharp drop) as investors parsed the beat/miss mix and deemed the near‑term outlook underwhelming relative to expectations. Read the earnings call highlights/transcript for color on demand trends and margin timing. Earnings call highlights and transcript

Wall Street Analysts Forecast Growth

FELE has been the topic of a number of recent analyst reports. Weiss Ratings reiterated a “hold (c)” rating on shares of Franklin Electric in a research note on Monday, December 29th. Robert W. Baird set a $112.00 target price on Franklin Electric in a research report on Wednesday, October 29th. Finally, Wall Street Zen raised Franklin Electric from a “hold” rating to a “buy” rating in a research note on Saturday, December 6th. Two equities research analysts have rated the stock with a Hold rating, According to data from MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $112.00.

Hedge Funds Weigh In On Franklin Electric

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Norges Bank acquired a new stake in Franklin Electric in the fourth quarter valued at $50,010,000. First Trust Advisors LP boosted its position in shares of Franklin Electric by 44.9% in the 2nd quarter. First Trust Advisors LP now owns 1,552,097 shares of the industrial products company’s stock worth $139,285,000 after buying an additional 481,108 shares in the last quarter. Impax Asset Management Group plc grew its stake in Franklin Electric by 47.8% in the 2nd quarter. Impax Asset Management Group plc now owns 1,246,729 shares of the industrial products company’s stock valued at $111,881,000 after acquiring an additional 403,115 shares during the last quarter. Amundi increased its holdings in Franklin Electric by 134.8% during the 3rd quarter. Amundi now owns 624,481 shares of the industrial products company’s stock valued at $59,424,000 after acquiring an additional 358,517 shares in the last quarter. Finally, Fort Washington Investment Advisors Inc. OH acquired a new position in Franklin Electric during the fourth quarter worth about $27,266,000. 79.98% of the stock is owned by institutional investors and hedge funds.

Franklin Electric Stock Down 14.7%

The firm’s fifty day simple moving average is $100.33 and its 200-day simple moving average is $97.10. The company has a market cap of $4.14 billion, a PE ratio of 30.29, a P/E/G ratio of 1.93 and a beta of 1.08. The company has a quick ratio of 1.12, a current ratio of 2.54 and a debt-to-equity ratio of 0.10.

Franklin Electric Company Profile

Franklin Electric Co, Inc is a world‐leading manufacturer and distributor of systems and components for moving and managing water and fuel. Headquartered in Fort Wayne, Indiana, the company specializes in designing engineered pumping systems and related controls for residential, commercial and industrial applications.

Founded in 1944, Franklin Electric has built its reputation on submersible and surface pumping solutions for water wells, municipal water and wastewater treatment, irrigation and industrial fluid handling.