Franklin Covey (NYSE:FC) Posts Earnings Results, Beats Estimates By $0.03 EPS

Franklin Covey (NYSE:FC) posted its quarterly earnings results on Wednesday. The business services provider reported $0.27 earnings per share for the quarter, beating the consensus estimate of $0.24 by $0.03, FiscalAI reports. Franklin Covey had a negative net margin of 0.88% and a positive return on equity of 12.79%. The company had revenue of $67.81 million during the quarter, compared to analyst estimates of $68.33 million. During the same quarter in the prior year, the business earned ($0.11) earnings per share.

Here are the key takeaways from Franklin Covey’s conference call:

• FranklinCovey reported third-quarter revenue of $67.8 million, up 1% year over year, and said it finished the quarter in line with expectations for the third consecutive quarter.
• Underlying demand in Enterprise North America remained strong, with invoiced amounts up 4% in Q3, services booking pace up more than 25% year to date, and deferred revenue up 18% year over year, which management said supports growth in fiscal 2027.
• The Education business showed healthy retention and subscription momentum, with subscription revenue up 11% in Q3 and 14% year to date, despite the impact of a delayed statewide funding decision.
• Management cut full-year revenue guidance to $260 million-$267 million due to a timing shift in Enterprise North America, a delayed education contract tied to state budget reductions, and about $2 million of pressure from the challenging international environment.
• Adjusted EBITDA rose 14% to $8.3 million in Q3, helped by lower SG&A expenses, and the company maintained full-year adjusted EBITDA guidance at $28 million-$31 million.

Franklin Covey Price Performance

NYSE FC opened at $25.27 on Thursday. Franklin Covey has a 1 year low of $11.16 and a 1 year high of $26.81. The stock has a market capitalization of $284.75 million, a PE ratio of -120.31, a PEG ratio of 1.54 and a beta of 0.80. The business’s 50-day moving average is $23.07 and its 200 day moving average is $19.46.

Institutional Trading of Franklin Covey

Several large investors have recently bought and sold shares of the company. Hsbc Holdings PLC purchased a new position in Franklin Covey during the fourth quarter valued at $209,000. Invesco Ltd. grew its stake in shares of Franklin Covey by 10.5% in the 4th quarter. Invesco Ltd. now owns 21,553 shares of the business services provider’s stock worth $362,000 after buying an additional 2,055 shares during the last quarter. EP Wealth Advisors LLC bought a new position in Franklin Covey during the 4th quarter valued at approximately $274,000. Man Group plc bought a new stake in Franklin Covey in the fourth quarter worth $226,000. Finally, Price T Rowe Associates Inc. MD grew its position in Franklin Covey by 51.3% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 34,518 shares of the business services provider’s stock valued at $580,000 after purchasing an additional 11,700 shares during the last quarter. 69.88% of the stock is owned by institutional investors.

Analyst Ratings Changes

FC has been the subject of a number of analyst reports. Barrington Research restated an “outperform” rating and issued a $25.00 price objective on shares of Franklin Covey in a research report on Thursday, April 2nd. National Bank Financial raised Franklin Covey to a “hold” rating in a research note on Sunday. Finally, Weiss Ratings reiterated a “sell (d)” rating on shares of Franklin Covey in a research report on Friday, April 10th. Two equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Franklin Covey presently has a consensus rating of “Hold” and a consensus target price of $26.00.

About Franklin Covey

Franklin Covey Co (NYSE:FC) is a global consulting and training firm specializing in performance improvement solutions for individuals and organizations. The company offers a range of services, including leadership development, productivity tools, execution frameworks and assessments designed to foster personal effectiveness and drive business results. Its flagship offerings integrate training workshops, digital resources and coaching to support clients in areas such as strategic planning, team productivity and change management.

The origins of Franklin Covey trace back to the merger in 1997 of Franklin Quest Co, founded in 1983 by Hyrum W.