Franklin Covey (NYSE:FC – Get Free Report) issued its earnings results on Wednesday. The business services provider reported $0.62 EPS for the quarter, beating analysts’ consensus estimates of $0.59 by $0.03, Zacks reports. The business had revenue of $69.96 million during the quarter, compared to analyst estimates of $72.24 million. Franklin Covey had a return on equity of 17.37% and a net margin of 0.83%.
Here are the key takeaways from Franklin Covey’s conference call:
- Management expects growth in fiscal 2027. Guidance is $263 million–$273 million in constant-currency revenue and $29 million–$34 million in Adjusted EBITDA; at the midpoint, EBITDA growth would be about 9%, with roughly 80 basis points of margin expansion. The outlook depends in part on converting stronger invoicing and deferred revenue into reported results.
- Enterprise North America showed stronger forward indicators. Full-year invoiced amounts rose 4% and deferred revenue increased 17%; management said hunter productivity more than doubled versus fiscal 2024 and plans to expand the hunting team by more than 20% in fiscal 2027.
- Fiscal 2026 revenue and cash generation weakened. Revenue fell 2% to $261.5 million, while operating cash flow declined to $21.6 million from $29 million and free cash flow fell to $9.2 million from $12.1 million. Adjusted EBITDA was nearly flat for the year, although fourth-quarter EBITDA increased 9%.
- Education invoicing declined despite modest revenue growth. Revenue rose 2% to $76.2 million, but invoiced amounts fell 10%, partly because of delayed large contracts and a district renewal shifting into fiscal 2027; management expects invoicing to return to growth, though timing of funding decisions remains a risk.
Franklin Covey Price Performance
Shares of Franklin Covey stock traded down $0.72 during trading hours on Thursday, reaching $16.61. The company had a trading volume of 27,876 shares, compared to its average volume of 116,636. The firm has a market cap of $187.47 million, a PE ratio of 97.68, a price-to-earnings-growth ratio of 0.86 and a beta of 0.76. Franklin Covey has a one year low of $11.16 and a one year high of $26.81. The business has a fifty day simple moving average of $18.16 and a 200 day simple moving average of $19.58.
Analysts Set New Price Targets
Several analysts recently commented on the company. Wall Street Zen raised Franklin Covey from a “hold” rating to a “buy” rating in a research note on Sunday, August 30th. Weiss Ratings reiterated a “sell (d+)” rating on shares of Franklin Covey in a research note on Friday, October 2nd. Two equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $27.50.
Get Our Latest Research Report on Franklin Covey
Franklin Covey Company Profile
Franklin Covey Co (NYSE: FC) is a global professional-services and training company that helps organizations improve leadership, execution, productivity, sales performance and workplace culture. Its services are designed for businesses, government agencies and other institutions seeking to develop employees and improve organizational performance.
The company provides consulting, training, coaching, assessment tools and digital learning solutions. Its offerings address areas such as leadership development, trust, change management, business execution, customer loyalty and individual effectiveness.
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