The 10-second takeaway
For the quarter ended Dec. 1 (Q1), Franklin Covey beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share grew significantly.
Gross margins were steady, operating margins grew, net margins expanded.
Franklin Covey logged revenue of $44.1 million. The four analysts polled by S&P Capital IQ hoped for revenue of $42.9 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $39.5 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 $0.15. The three earnings estimates compiled by S&P Capital IQ forecast $0.13 per share. GAAP EPS of $0.15 for Q1 were 67% higher than the prior-year quarter's $0.09 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 67.1%, about the same as the prior-year quarter. Operating margin was 12.0%, 260 basis points better than the prior-year quarter. Net margin was 6.6%, 240 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $41.8 million. On the bottom line, the average EPS estimate is $0.10.
Next year's average estimate for revenue is $188.2 million. The average EPS estimate is $0.61.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Franklin Covey is outperform, with an average price target of $17.75.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. TMFDisclosureHere