Franklin Covey (NYSE:FC) Posts Earnings Results, Beats Expectations 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 analysts’ consensus estimates of $0.24 by $0.03, FiscalAI reports. The company had revenue of $67.81 million for the quarter, compared to the consensus estimate of $68.33 million. Franklin Covey had a net margin of 0.83% and a return on equity of 16.55%. During the same period last year, the company posted ($0.11) EPS.

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 Trading Down 13.5%

Shares of FC opened at $21.63 on Friday. Franklin Covey has a 12 month low of $11.16 and a 12 month high of $26.81. The firm’s fifty day simple moving average is $23.04 and its two-hundred day simple moving average is $19.49. The stock has a market capitalization of $243.79 million, a P/E ratio of 127.22, a price-to-earnings-growth ratio of 1.57 and a beta of 0.80.

Wall Street Analyst Weigh In

FC has been the topic of a number of research analyst reports. National Bank Financial upgraded shares of Franklin Covey to a “hold” rating in a research report on Sunday, June 28th. Roth Mkm increased their target price on Franklin Covey from $22.00 to $25.00 and gave the company a “buy” rating in a research report on Thursday. Barrington Research reissued an “outperform” rating and set a $30.00 price target on shares of Franklin Covey in a research note on Thursday. Finally, Weiss Ratings restated a “sell (d)” rating on shares of Franklin Covey in a report on Friday, April 10th. Two research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Franklin Covey presently has a consensus rating of “Hold” and an average target price of $27.50.

Key Stories Impacting Franklin Covey

Here are the key news stories impacting Franklin Covey this week:

• Positive Sentiment: Franklin Covey beat earnings estimates in Q3, reporting $0.27 EPS versus $0.24 expected, and management said deferred revenue, booked services, and North America execution could support a stronger fiscal 2027 setup. Article Title
• Neutral Sentiment: Barrington Research reaffirmed its “outperform” rating on Franklin Covey and set a $30 price target, implying meaningful upside from the current share price. Article Title
• Negative Sentiment: The company lowered fiscal 2026 revenue guidance to $260 million-$267 million, below the prior outlook and slightly under Wall Street expectations, signaling slower top-line growth ahead. Article Title
• Negative Sentiment: Investor reaction to the earnings release has been negative because the revenue miss and reduced outlook outweighed the quarter’s stronger profit and EBITDA performance. Article Title

Institutional Investors Weigh In On Franklin Covey

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Hsbc Holdings PLC bought a new position in shares of Franklin Covey during the 4th quarter worth about $209,000. Invesco Ltd. raised its stake in Franklin Covey by 10.5% during 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 period. EP Wealth Advisors LLC acquired a new position in Franklin Covey during the 4th quarter worth approximately $274,000. Man Group plc bought a new position in Franklin Covey in the fourth quarter worth approximately $226,000. Finally, Price T Rowe Associates Inc. MD boosted its holdings in Franklin Covey by 51.3% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 34,518 shares of the business services provider’s stock worth $580,000 after acquiring an additional 11,700 shares in the last quarter. 69.88% of the stock is owned by institutional investors.

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.