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Sep 30, 2020
Franklin Electric Q3 2020 Earnings Report
Franklin Electric's third quarter earnings were reported, achieving a record EPS before restructuring of $0.83, a 14% increase year-over-year, and sales of $351.2 million.
Key Takeaways
Franklin Electric reported a strong third quarter with record earnings. EPS before restructuring expenses grew by 14% year-over-year. The company's water businesses outside the U.S. and Canada experienced organic growth, and the distribution business also saw organic growth. The fueling systems sales declined, but improved sequentially from the previous quarter. Management is optimistic about the remainder of 2020 and looking forward to 2021.
Third quarter EPS before restructuring expense was $0.83, a 14% increase year-over-year.
Third quarter sales were $351.2 million, compared to $348.4 million in the third quarter 2019.
Water businesses outside the U.S. and Canada grew organically by about 15%.
Distribution business grew by 13% organically.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Franklin Electric raised its full year guidance for both earnings per share and free cash flow. The company now expects full year 2020 earnings per share before restructuring expenses to be between $2.10 and $2.15. They expect free cash flow as a percent of net income to be over 170 percent for the full year 2020.
Positive Outlook
- Water Systems and Distribution segments are expected to continue to have solid top line performance, except for large dewatering products.
- Expects free cash flow as a percent of net income to be over 170 percent for the full year 2020.
- Full year 2020 earnings per share before restructuring expenses will be between $2.10 and $2.15.
- Commitment to safety
- Ethical compliance with established policies
Challenges Ahead
- Continued weakness in filling station builds and upgrades globally.
- Large dewatering equipment sales in the Water Systems segment continue to be depressed.
- The deferral or cancellation of the construction of new filling stations in the Fueling Systems segment continues.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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