Franklin Covey Shares Fall 10% After 4Q Revenue Misses Estimates — Update

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By Ben Glickman

Shares of Franklin Covey fell Thursday after the company’s revenue fell and missed forecasts in the fiscal fourth quarter.

The stock slid 10% to $34.745 in afternoon trading, after reaching an intraday 52-week low of $32.19 in the morning. Shares have fallen 26% this year.

The Salt Lake City-based organizational training company’s sales fell to $78 million in the quarter ended Aug. 31, compared with $78.8 million a year earlier. The company had forecast revenue of $81.4 million and analysts had expected $81.6 million, according to FactSet.

Franklin Covey logged a fourth-quarter profit of $6.81 million, or 49 cents a share, compared with $5.58 million, or 39 cents a share, a year earlier. Analysts polled by FactSet expected a profit of 49 cents a share.

The company said it saw lower sales of its legacy products and services, as well as fewer onsite presentations in the enterprise division and lower materials sales in the education division.

Franklin Covey expects fiscal 2024 adjusted Ebitda, or earnings before interest, tax, depreciation and amortization, of $54.5 million to $58 million. The company said it expects to achieve the guidance despite economic headwinds.

Write to Ben Glickman at [email protected]

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