Equity Profile

FELE

Franklin Electric Co., Inc.

IndustrialsIndustrial Machinery & Supplies & Components$4.6B

Jul28Tue

Pre-Earnings Brief

UpcomingQ2-2026Pre-Market9:00 AM EDT

Company Snapshot

Franklin Electric Co., Inc. (FELE) operates in the industrial machinery sector, focusing on water and fueling systems....

Key Metrics to Watch

Earnings Per Share (EPS)

EPS is a key indicator of the company's profitability and will help investors gauge financial health this quarter.

N/A

Revenue Growth

Understanding revenue trends will provide insights into demand for Franklin's products and overall market conditions.

N/A

1 more metrics, Wall Street expectations, options signals, track record, and call prep available with Pro.

FELE Q2-2026 Earnings Preview

Context

Company Snapshot

Franklin Electric Co., Inc. (FELE) operates in the industrial machinery sector, focusing on water and fueling systems. The company is significant as it plays a crucial role in providing solutions for water management and fuel systems, which are essential for various industries including agriculture, construction, and energy.

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

50%

Avg EPS Surprise

-0.77%

Avg Stock Reaction

-3.07%

Last Quarter Recap

In Q1-2026, Franklin Electric reported an EPS of $0.83, exceeding expectations by 8.21%. However, the stock experienced a slight decline of 0.43% the following day, indicating mixed investor sentiment.

Management Promises & Guidance

Expectations

Wall Street Expectations

Investors are looking for signs of stability and growth in Franklin Electric's performance, especially after a mixed Q1. The market is keen to see if the company can maintain or improve its profitability.

Bull Case

If Franklin Electric shows strong revenue growth and maintains or improves its gross margins, it could signal robust demand and operational efficiency, leading to a positive market reaction.

Bear Case

Conversely, if the company reports disappointing revenue or declining margins, it could raise concerns about demand and profitability, resulting in a negative impact on the stock.

Expectations

Two Questions That Matter

The print will turn on these two things.

What is the expected revenue growth for the upcoming quarter?

Revenue growth will be a key indicator of demand for Franklin Electric's products and overall market health.

How has gross margin changed compared to previous quarters?

Changes in gross margin will provide insights into the company's pricing power and cost management.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating the potential for revenue growth driven by increased demand in water management solutions, especially in agriculture and energy sectors.

Supporting Evidence

Recent trends in water scarcity and energy efficiency are driving demand for Franklin Electric's products.

The options market is pricing a significant move, indicating that traders expect volatility, which could reflect underlying strength.

Franklin's historical performance shows a tendency to exceed expectations when market conditions are favorable.

Key Risk

If revenue growth exceeds 10%, it could challenge the current cautious consensus.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance is critical as it will indicate whether Franklin Electric can sustain growth amidst potential market challenges.

Bull Confirmed If

A revenue growth rate of over 10% compared to the previous quarter would confirm the bull case.

Bear Confirmed If

If revenue growth is below 5%, it would support the bear case.

Pre-Earnings Positioning

Options Market

Implied Move

±6.93%

Historical Avg

±5.3%

Pricing rich

The options market is pricing in a significant move, suggesting that traders expect volatility around the earnings report.

Options are pricing ±6.9% while FELE has averaged ±5.3% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

0.3%

30d HV

23.1%

Calls (100)P/C Ratio: 1.00Puts (100)

Edge

Historical Setup Match

Cross-company pattern from 30 similar setups.

Prior-quarter beat + options rich in Industrials

n=30

Fade rate: 5 of 24 (21%)

This setup has occurred 30 times across Industrials in the last 2 years. 19 of 24 (79%) held or extended their move within 5 days — this setup typically holds direction. The average absolute 1-day move is 4.6%, with a raw directional average of +1.6% (modestly positive historical bias).

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Franklin Electric beats expectations, history suggests a potential stock increase of around 1.26%, confirming positive market sentiment.

In-Line / Cautious

A cautious in-line report could lead to muted reactions as investors await further clarity on future guidance.

Miss

If the company misses expectations, history indicates a potential decline of about 7.40%, reflecting investor disappointment.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on demand trends in the water management sector.
2Insights into cost management strategies and their impact on gross margins.
3Comments on supply chain stability and its effect on production.
4Guidance on future revenue expectations for the next quarter.
5Any new product launches or innovations that could drive future growth.

See the full picture

AI-powered briefs, options data, and 20 quarters of history — everything you need before earnings.

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Company Snapshot

Franklin Electric Co., Inc. (FELE) operates in the industrial machinery sector, focusing on water and fueling systems....

Key Metrics to Watch

Earnings Per Share (EPS)

EPS is a key indicator of the company's profitability and will help investors gauge financial health this quarter.

N/A

Revenue Growth

Understanding revenue trends will provide insights into demand for Franklin's products and overall market conditions.

N/A

1 more metrics, Wall Street expectations, options signals, track record, and call prep available with Pro.

FELE Q2-2026 Earnings Preview

Context

Company Snapshot

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

50%

Avg EPS Surprise

-0.77%

Avg Stock Reaction

-3.07%

Last Quarter Recap

Management Promises & Guidance

Expectations

Wall Street Expectations

Bull Case

If Franklin Electric shows strong revenue growth and maintains or improves its gross margins, it could signal robust demand and operational efficiency, leading to a positive market reaction.

Bear Case

Conversely, if the company reports disappointing revenue or declining margins, it could raise concerns about demand and profitability, resulting in a negative impact on the stock.

Expectations

Two Questions That Matter

The print will turn on these two things.

What is the expected revenue growth for the upcoming quarter?

Revenue growth will be a key indicator of demand for Franklin Electric's products and overall market health.

How has gross margin changed compared to previous quarters?

Changes in gross margin will provide insights into the company's pricing power and cost management.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating the potential for revenue growth driven by increased demand in water management solutions, especially in agriculture and energy sectors.

Supporting Evidence

Recent trends in water scarcity and energy efficiency are driving demand for Franklin Electric's products.

The options market is pricing a significant move, indicating that traders expect volatility, which could reflect underlying strength.

Franklin's historical performance shows a tendency to exceed expectations when market conditions are favorable.

Key Risk

If revenue growth exceeds 10%, it could challenge the current cautious consensus.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance is critical as it will indicate whether Franklin Electric can sustain growth amidst potential market challenges.

Bull Confirmed If

A revenue growth rate of over 10% compared to the previous quarter would confirm the bull case.

Bear Confirmed If

If revenue growth is below 5%, it would support the bear case.

Pre-Earnings Positioning

Options Market

Implied Move

±6.93%

Historical Avg

±5.3%

Pricing rich

The options market is pricing in a significant move, suggesting that traders expect volatility around the earnings report.

Options are pricing ±6.9% while FELE has averaged ±5.3% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

0.3%

30d HV

23.1%

Calls (100)P/C Ratio: 1.00Puts (100)

Edge

Historical Setup Match

Cross-company pattern from 30 similar setups.

Prior-quarter beat + options rich in Industrials

n=30

Fade rate: 5 of 24 (21%)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Franklin Electric beats expectations, history suggests a potential stock increase of around 1.26%, confirming positive market sentiment.

In-Line / Cautious

A cautious in-line report could lead to muted reactions as investors await further clarity on future guidance.

Miss

If the company misses expectations, history indicates a potential decline of about 7.40%, reflecting investor disappointment.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on demand trends in the water management sector.
2Insights into cost management strategies and their impact on gross margins.
3Comments on supply chain stability and its effect on production.
4Guidance on future revenue expectations for the next quarter.
5Any new product launches or innovations that could drive future growth.