Franklin Covey Stock Rises After-Hours On Q1 Earnings Win Before Turning Lower

Franklin Covey Company FC shares are trading lower in Thursday’s after-hours session. The stock initially rose on news of the company’s first-quarter earnings results but soon tumbled lower.

Here’s an overview of the metrics that are behind the price movement.

What To Know: The company reported quarterly earnings of 36 cents, exceeding estimates of 23 cents per share, a 12.5% increase over earnings of 32 cents per share from the same period last year.

Revenue of $68.40 million clocked in above the analyst consensus estimate of $65.88 million, marking a 1.40% decrease over sales of $69.37 million the same period last year.

Additionally, cash flows from operating activities rose to $17.4 Million, compared to $3.0 Million in the same period last year.

Franklin Covey affirmed its outlook that adjusted EBITDA will grow to between $54.5 million and $58 million in constant currency in the full year 2024, versus  $48.1 million achieved in the same period in 2023.

Paul Walker, president and CEO, weighed in on the results, saying, “Although our results were essentially even with last year’s first quarter, we are pleased that both revenue and Adjusted EBITDA came in stronger than forecasted.”

Walker added: “While we also expect second-quarter revenue to be about even with the prior year, there are several key factors we expect will significantly strengthen in the back half of the year. These include a high flow-through of revenue, which will drive the growth in Adjusted EBITDA to our fiscal 2024 target of between $54.5 million and $58 million.”

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FC Price Action: Shares of Franklin Covey were down 5.51% at $37.20 in the after-hours session at the time of publication, according to Benzinga Pro.

Photo: Stuart Bailey from Pixabay

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