Analyst Estimates: Here's What Brokers Think Of Franklin Electric Co., Inc. (NASDAQ:FELE) After Its Full-Year Report
It's been a good week for Franklin Electric Co., Inc. (NASDAQ:FELE) shareholders, because the company has just released its latest yearly results, and the shares gained 2.6% to US$100. Franklin Electric reported in line with analyst predictions, delivering revenues of US$2.1b and statutory earnings per share of US$4.11, suggesting the business is executing well and in line with its plan. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Check out our latest analysis for Franklin Electric
Following the latest results, Franklin Electric's five analysts are now forecasting revenues of US$2.12b in 2024. This would be a satisfactory 2.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 2.6% to US$4.30. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.14b and earnings per share (EPS) of US$4.30 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
The analysts reconfirmed their price target of US$99.00, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Franklin Electric analyst has a price target of US$110 per share, while the most pessimistic values it at US$87.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Franklin Electric's revenue growth is expected to slow, with the forecast 2.7% annualised growth rate until the end of 2024 being well below the historical 13% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 3.2% annually. Factoring in the forecast slowdown in growth, it seems obvious that Franklin Electric is also expected to grow slower than other industry participants.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Franklin Electric's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$99.00, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Franklin Electric going out to 2025, and you can see them free on our platform here..
Plus, you should also learn about the 1 warning sign we've spotted with Franklin Electric .
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
