The 10-second takeaway
For the quarter ended Aug. 31 (Q4), Franklin Covey beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew significantly.
Margins expanded across the board.
Franklin Covey notched revenue of $51.0 million. The four analysts polled by S&P Capital IQ foresaw a top line of $48.0 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $45.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.18. The three earnings estimates compiled by S&P Capital IQ predicted $0.14 per share. GAAP EPS of $0.18 for Q4 were 20% higher than the prior-year quarter's $0.15 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 68.6%, 310 basis points better than the prior-year quarter. Operating margin was 15.1%, 770 basis points better than the prior-year quarter. Net margin was 6.7%, 10 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $42.7 million. On the bottom line, the average EPS estimate is $0.13.
Next year's average estimate for revenue is $181.7 million. The average EPS estimate is $0.55.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 39 members out of 46 rating the stock outperform, and seven members rating it underperform. Among seven CAPS All-Star picks (recommendations by the highest-ranked CAPS members), seven give Franklin Covey a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Franklin Covey is outperform, with an average price target of $15.00.
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