Franklin Electric (NASDAQ:FELE) Shares Gap Down Following Weak Earnings

Franklin Electric Co., Inc. (NASDAQ:FELE)’s share price gapped down before the market opened on Tuesday following a dissappointing 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 trading hands.

The industrial products company reported $0.87 EPS for the quarter, missing the consensus estimate of $0.89 by ($0.02). Franklin Electric had a return on equity of 14.52% and a net margin of 6.90%.The company had revenue of $506.86 million during the quarter, compared to the consensus estimate of $516.25 million. During the same period in the previous year, the firm posted $0.72 earnings per share. The company’s revenue was up 4.4% on a year-over-year basis. Franklin Electric has set its FY 2026 guidance at 4.400-4.600 EPS.

Franklin Electric Increases Dividend

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

Key Headlines Impacting Franklin Electric

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

• Positive Sentiment: Q4 results show earnings improvement versus a year ago (EPS $0.87 vs $0.72), and management reiterated a multi-hundred-million-dollar sales target range for 2026 while emphasizing margin expansion, which could support higher long-term profitability. Franklin Electric outlines $2.17B–$2.24B sales guidance
• Positive Sentiment: Company issued FY2026 EPS guidance of $4.40–$4.60 (midpoint ~4.50), which aligns with management’s margin-expansion plan and, if achieved, would be accretive versus last year. Earnings call highlights and guidance
• Neutral Sentiment: Revenue showed modest year-over-year growth (+4.4%) but missed estimates, leaving the top-line trajectory unclear; investors will be watching execution on growth initiatives. Q4 Earnings Snapshot
• Neutral Sentiment: Company provided detailed earnings materials and an earnings-call transcript for investors to evaluate guidance assumptions and margin plans. Earnings presentation materials
• Negative Sentiment: Q4 revenue and EPS missed consensus (revenue $506.86M vs est. $516.25M; EPS $0.87 vs est. $0.89), and the revenue miss triggered a sharp intraday sell-off as investors reprice near-term growth expectations. Shares tumble on revenue miss
• Negative Sentiment: DA Davidson reiterated a neutral rating with a $90 price target (near current levels), signaling limited near-term upside and adding analyst caution after the quarter. DA Davidson reiterates neutral

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on the stock. Wall Street Zen upgraded shares of Franklin Electric from a “hold” rating to a “buy” rating in a report on Saturday, December 6th. DA Davidson reissued a “neutral” rating and set a $90.00 target price on shares of Franklin Electric in a research report on Wednesday. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Franklin Electric in a report on Monday, December 29th. Finally, Robert W. Baird set a $112.00 price objective on shares of Franklin Electric in a report on Wednesday, October 29th. Three investment analysts have rated the stock with a Hold rating, According to MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $101.00.

Institutional Trading of Franklin Electric

A number of hedge funds have recently modified their holdings of FELE. Quarry LP purchased a new stake in Franklin Electric during the third quarter worth $28,000. Aster Capital Management DIFC Ltd purchased a new position in Franklin Electric in the fourth quarter valued at $35,000. EverSource Wealth Advisors LLC raised its position in shares of Franklin Electric by 31.2% in the second quarter. EverSource Wealth Advisors LLC now owns 425 shares of the industrial products company’s stock worth $38,000 after acquiring an additional 101 shares during the period. Farther Finance Advisors LLC boosted its stake in shares of Franklin Electric by 213.1% during the 4th quarter. Farther Finance Advisors LLC now owns 454 shares of the industrial products company’s stock worth $43,000 after acquiring an additional 309 shares in the last quarter. Finally, MAI Capital Management grew its position in shares of Franklin Electric by 36.5% during the 2nd quarter. MAI Capital Management now owns 490 shares of the industrial products company’s stock valued at $44,000 after acquiring an additional 131 shares during the period. Hedge funds and other institutional investors own 79.98% of the company’s stock.

Franklin Electric Price Performance

The company has a current ratio of 2.79, a quick ratio of 1.12 and a debt-to-equity ratio of 0.10. The stock has a 50-day moving average price of $100.24 and a 200 day moving average price of $97.05. The stock has a market capitalization of $4.05 billion, a price-to-earnings ratio of 28.22, a PEG ratio of 1.70 and a beta of 1.08.

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.