Gold prices hit 2-week high as Trump-Fed feud escalates with Cook firing
SALT LAKE CITY - Franklin Covey Co . (NYSE:FC) saw its shares plunge 9.9% after the organizational performance improvement company reported second-quarter revenue that fell short of analyst expectations and provided disappointing full-year guidance.
For the quarter ended February 28, 2025, Franklin Covey posted revenue of $59.6 million, missing the consensus estimate of $62.24 million. The company reported an adjusted loss per share of $0.08, which was better than the expected loss of $0.10 per share.
The revenue decline was primarily due to decreased Enterprise Division sales, which fell to $43.6 million from $45.6 million in the prior year. This drop was attributed to lower International Direct Office revenues and North America segment revenues, impacted by canceled government contracts and macroeconomic uncertainties.
On a positive note, the Education Division saw a 3% YoY increase in revenue to $15.1 million, driven by growth in training, coaching, and subscription revenues.
Franklin Covey CEO Paul Walker commented, "While our clients are not immune to the challenges in the broader economic and political landscape, we are pleased that the nature and importance of the opportunities and challenges we help organizations address are critical in both good and challenging business environments."
Looking ahead, the company revised its fiscal 2025 guidance, now expecting revenue between $275 million and $285 million, significantly below the analyst consensus of $297.4 million. This guidance reflects ongoing challenges related to government actions and the current business environment.
Despite the near-term headwinds, Franklin Covey remains committed to its growth strategy, with Walker noting, "We continue to be confident and excited about executing our strategy to deliver accelerated revenue and Adjusted EBITDA growth."
The company’s liquidity remains strong, with over $100 million available, including $40.4 million in cash and no drawdowns on its $62.5 million credit facility.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.