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Franklin Covey Q4 revenue falls and misses estimates

By Reuters News


Overview

  • Leadership training firm's Q4 revenue declined yr/yr and missed analyst expectations

  • Q4 adjusted EBITDA rose 9% despite lower revenue

  • Q4 net income increased to $7.1 mln from $4.4 mln last yr


Outlook

  • Franklin Covey sees FY2027 revenue between $263 mln and $273 mln

  • Company expects FY2027 adjusted EBITDA between $29 mln and $34 mln

  • Company expects China transition to reduce FY2027 revenue by about $2 mln, no material EBITDA impact


Result Drivers

  • ENTERPRISE NORTH AMERICA - Co said increased client commitments and higher deferred revenue in Enterprise North America supported results

  • OPERATING DISCIPLINE - Co attributed higher Q4 adjusted EBITDA to operating discipline despite lower revenue

  • EDUCATION SEGMENT - Co said strong school retention and expansion of Leader in Me program aided Education division performance


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Sales

Miss

$69.96 mln

$72.24 mln (4 Analysts)

Q4 Net Income

$7.11 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the professional & business education peer group is "buy"

  • Wall Street's median 12-month price target for Franklin Covey Co. is $30.00, about 74.7% above its November 3 closing price of $17.17

  • The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 23 three months ago


Reuters Recommended Reads

  • Nov 3 - Thomson Reuters Q3 revenue, profit miss estimates

  • Nov 3 - Huron Consulting Q3 revenue rises

  • Nov 3 - Hackett Group Q3 adj EPS beats estimates


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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