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The Gory Details on Franklin Covey's Double Miss

By Seth Jayson - Updated Apr 10, 2017 at 1:55PM

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Just the facts, Fool.

Franklin Covey (NYSE: FC) reported earnings on April 4. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 2 (Q2), Franklin Covey missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue grew. GAAP earnings per share grew significantly.

Margins grew across the board.

Revenue details
Franklin Covey reported revenue of $40.4 million. The five analysts polled by S&P Capital IQ hoped for revenue of $42.6 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.08. The four earnings estimates compiled by S&P Capital IQ anticipated $0.10 per share. GAAP EPS of $0.08 for Q2 were 33% higher than the prior-year quarter's $0.06 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 67.5%, 280 basis points better than the prior-year quarter. Operating margin was 8.0%, 180 basis points better than the prior-year quarter. Net margin was 3.9%, 90 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $45.6 million. On the bottom line, the average EPS estimate is $0.13.

Next year's average estimate for revenue is $187.2 million. The average EPS estimate is $0.62.

Investor sentiment

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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Stocks Mentioned

Franklin Covey Co. Stock Quote
Franklin Covey Co.
FC
$36.76 (-0.16%) $0.06

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