Franklin Covey (NYSE:FC) Announces Earnings Results, Beats Expectations By $0.03 EPS

Franklin Covey (NYSE:FC) released its earnings results on Wednesday. The business services provider reported $0.62 earnings per share for the quarter, topping the consensus estimate of $0.59 by $0.03, Zacks reports. Franklin Covey had a net margin of 0.83% and a return on equity of 17.37%.

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 Stock Up 1.2%

Shares of NYSE:FC traded up $0.21 during trading on Wednesday, hitting $17.38. The stock had a trading volume of 56,482 shares, compared to its average volume of 50,335. Franklin Covey has a 12-month low of $11.16 and a 12-month high of $26.81. The stock has a market capitalization of $196.18 million, a price-to-earnings ratio of 23.85, a price-to-earnings-growth ratio of 0.86 and a beta of 0.76. The stock has a 50-day simple moving average of $18.16 and a two-hundred day simple moving average of $19.58.

Analyst Upgrades and Downgrades

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

About Franklin Covey

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.