It's shaping up to be a tough period for Franklin Electric Co., Inc. (NASDAQ:FELE), which a week ago released some disappointing first-quarter results that could have a notable impact on how the market views the stock. Franklin Electric missed analyst forecasts, with revenues of US$455m and statutory earnings per share (EPS) of US$0.67, falling short by 3.2% and 9.2% respectively. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the consensus forecast from Franklin Electric's five analysts is for revenues of US$2.10b in 2025. This reflects a reasonable 4.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 5.4% to US$4.11. In the lead-up to this report, the analysts had been modelling revenues of US$2.11b and earnings per share (EPS) of US$4.18 in 2025. 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.

Check out our latest analysis for Franklin Electric

With no major changes to earnings forecasts, the consensus price target fell 11% to US$97.25, suggesting that the analysts might have previously been hoping for an earnings upgrade. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Franklin Electric at US$105 per share, while the most bearish prices it at US$90.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Franklin Electric's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Franklin Electric's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 5.5% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.8% annually. So it's pretty clear that, while Franklin Electric's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Franklin Electric analysts - going out to 2026, and you can see them free on our platform here.

It might also be worth considering whether Franklin Electric's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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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.