The 10-second takeaway
For the quarter ended June 1 (Q3), Franklin Covey beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. GAAP earnings per share expanded significantly.
Margins increased across the board.
Franklin Covey chalked up revenue of $44.9 million. The four analysts polled by S&P Capital IQ hoped for revenue of $43.4 million on the same basis. GAAP reported sales were 8.7% higher than the prior-year quarter's $41.3 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 $0.13. The four earnings estimates compiled by S&P Capital IQ forecast $0.11 per share. GAAP EPS of $0.13 for Q3 were 44% 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 65.6%, 230 basis points better than the prior-year quarter. Operating margin was 9.1%, 90 basis points better than the prior-year quarter. Net margin was 4.7%, 80 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $56.6 million. On the bottom line, the average EPS estimate is $0.28.
Next year's average estimate for revenue is $185.4 million. The average EPS estimate is $0.62.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 36 members out of 43 rating the stock outperform, and seven members rating it underperform. Among eight CAPS All-Star picks (recommendations by the highest-ranked CAPS members), eight 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 $17.75.
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