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Market Overview

Earnings Preview: Franklin Electric

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On Tuesday, February 16, Franklin Electric (NASDAQ:FELE) will release its latest earnings report. Check out Benzinga's preview to understand the implications.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Franklin Electric EPS is expected to be around $0.52, according to sell-side analysts. Sales will likely be near $311.74 million. Franklin Electric reported a per-share profit of $0.43 when it published results during the same quarter last year. Sales in that period totaled $320.11 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The analyst consensus estimate would represent a 20.93% increase in the company's EPS figure. Sales would be down 2.61% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 0.63 0.43 0.19 0.51
EPS Actual 0.83 0.54 0.24 0.43
Revenue Estimate 326.65 M 296.39 M 281.90 M 321.63 M
Revenue Actual 351.19 M 308.28 M 266.75 M 320.11 M

Stock Performance

Shares of Franklin Electric were trading at $75.86 as of February 11. Over the last 52-week period, shares are up 27.27%. Given that these returns are generally positive, long-term shareholders can be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Franklin Electric is scheduled to hold the call at 09:00:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings