Source: Alex Lavoie
Franklin Covey Co. Outperforms Zacks Consensus Estimate
Franklin Covey Co. (NYSE:FC), a significant player in the organizational performance improvement sector, reported an earnings per share (EPS) of $0.18, considerably exceeding the Zacks Consensus Estimate. FC specializes in delivering content, training, and tools designed to instigate systemic changes in human behavior. Operating within the competitive Zacks Consulting Services industry, it stands toe-to-toe with other firms offering similar consulting and training services.
Earnings Report Details
On July 2, 2025, FC announced an EPS of $0.18. This figure notably surpassed the Zacks Consensus Estimate, which had predicted a loss per share of $0.08. Consequently, this marks a substantial earnings surprise of 325%, proving that FC has the potential to deliver impressive financial performance, even in challenging market conditions.
However, it is essential to consider that this EPS represents a decrease from the $0.43 reported in the same quarter last year. This year-on-year decline suggests that while FC has the capacity to outperform market expectations, it continues to face challenges that impact its overall profitability.
Quarterly Revenue Performance
Despite the impressive earnings beat, FC’s quarterly revenue was $67.12 million, falling slightly short of the estimated $67.5 million. This figure also indicates a decrease from the $73.37 million reported in the same quarter of the previous year, reflecting a trend of declining revenues. Over the past four quarters, FC has managed to exceed consensus EPS estimates three times, demonstrating its ability to generate profits. However, it has only surpassed revenue estimates once, indicating potential issues with sales growth or market demand.
Insight into FC’s Market Valuation
FC’s financial metrics offer valuable insight into its market valuation. With a price-to-earnings (P/E) ratio of approximately 16.28, it is evident how the market values FC’s earnings. This ratio is a critical valuation metric that indicates the dollar amount an investor can expect to invest in FC to receive one dollar of the company’s earnings.
Moreover, FC’s price-to-sales ratio stands at about 1.00. This suggests that the company’s market value is roughly on par with its sales, indicating that investors are paying equally for each dollar of sales the company generates. The enterprise value to sales ratio, which is approximately 0.88, further demonstrates the company’s valuation in relation to its sales, taking into account debt and excluding cash.
Assessing FC’s Financial Health
FC’s financial health indicators include a debt-to-equity ratio of 0.057, suggesting a relatively low level of debt in comparison to its equity. This is favorable as it implies that the company has not excessively relied on borrowing to finance its growth, thereby reducing potential financial risks.
Further, the current ratio of approximately 0.90 shows FC’s ability to cover its short-term liabilities with its short-term assets. While this is slightly below the ideal benchmark of 1, it is not alarmingly low. These financial health metrics, taken together, provide a comprehensive view of FC’s financial standing and market position, making it an interesting prospect for potential investors and stakeholders.