Demo
FELE Nasdaq· Franklin Electric Co., Inc
FundamentalsNews digest Peer analysis
Login
FELE Nasdaq· Franklin Electric Co., Inc
Earnings report Q3 2023

Franklin Electric Co., Inc. Reports Mixed Revenue Performance in Third Quarter 2023

Segments of revenue

In the third quarter of 2023, Franklin Electric Co., Inc. reported net sales of $295.8 million. The Water Systems segment contributed $157.7 million in external sales, with the United States & Canada region accounting for $157.7 million, Latin America contributing $45.5 million, Europe, Middle East & Africa contributing $48.7 million, and Asia Pacific contributing $19.6 million. Intersegment sales in the United States & Canada region amounted to $24.3 million. The Distribution segment reported external sales of $189.2 million, with the United States & Canada region contributing $189.2 million. The Fueling Systems segment reported external sales of $77.7 million, with the United States & Canada region contributing $58.5 million and All other regions contributing $19.2 million. Intersegment eliminations/other amounted to ($24.3) million.

Strengths

Despite a 2 percent decrease in net sales in the third quarter of 2023, Franklin Electric Co., Inc. demonstrated resilience through a 2 percent increase in net sales for the first nine months of the year. The sales increase in the first nine months was primarily driven by price realization, partially offset by the negative impact of foreign currency translation. The company's management highlighted the positive impact of price realization on the sales increase. Additionally, Franklin Electric Co., Inc. reported a consolidated gross profit of $186.3 million in the third quarter, representing an increase of $11.8 million from the prior-year period.

Challenges

Franklin Electric Co., Inc. faced challenges in the third quarter of 2023, with a 2 percent decrease in net sales primarily attributed to lower volumes and the negative impact of foreign currency translation. The company's management acknowledged the adverse effects of these factors on sales performance. Furthermore, the company experienced a slight decrease in diluted earnings per share from $1.24 in the third quarter of 2022 to $1.23 in the third quarter of 2023.

Noteworthy

It is noteworthy that Franklin Electric Co., Inc. reported an increase in net income for the first nine months of 2023 compared to the prior-year period. Net income in the first nine months of 2023 was $155.9 million, an increase of $7 million from the first nine months of 2022. The company's effective tax rate also increased in the third quarter of 2023 compared to the same period in the prior year, primarily due to less favorable discrete events.

Summary

Franklin Electric Co., Inc. faced challenges in the third quarter of 2023, with a 2 percent decrease in net sales attributed to lower volumes and the negative impact of foreign currency translation. However, the company demonstrated strength through a 2 percent increase in net sales for the first nine months of the year, driven by price realization. The company's management highlighted the positive impact of price realization on the sales increase. Despite the challenges, Franklin Electric Co., Inc. reported an increase in net income for the first nine months of 2023 compared to the prior-year period. Overall, the company's performance in the latest quarter was mixed, with both strengths and challenges impacting its revenue.

Source documents

Form 10-Q  filed on Oct 27, 2023
87 pages scanned

Reference data

Company financials Q3 revenue 473M
Analyst estimates Q3 EPS missed by -1.35%
Sign up to Fey

Get in-depth analysis on thousands of stocks for just $30/month. Cancel anytime.