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

Franklin Covey (NYSE:FC) posted its quarterly earnings results on Wednesday. The business services provider reported $0.62 EPS for the quarter, beating the consensus estimate of $0.59 by $0.03, Zacks reports. The business had revenue of $69.96 million during the quarter, compared to analysts’ expectations of $72.24 million. Franklin Covey had a return on equity of 25.57% and a net margin of 1.88%.

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

FC stock traded up $0.14 during trading on Friday, reaching $16.30. 60,204 shares of the stock traded hands, compared to its average volume of 116,544. Franklin Covey has a 52-week low of $11.16 and a 52-week high of $26.81. The firm has a market capitalization of $184.04 million, a PE ratio of 36.21, a P/E/G ratio of 0.87 and a beta of 0.76. The business’s 50 day moving average price is $18.07 and its 200-day moving average price is $19.55.

Analyst Ratings Changes

A number of research firms recently commented on FC. Weiss Ratings reissued a “sell (d+)” rating on shares of Franklin Covey in a report on Friday, October 2nd. Wall Street Zen upgraded Franklin Covey from a “hold” rating to a “buy” rating in a research report on Sunday, August 30th. Two analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Franklin Covey currently has an average rating of “Hold” and a consensus price target of $27.50.

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.