Franklin Covey Stock Falls After Q2 Profit Miss, Dour Forecast: Retail’s Split

The company now expects its fiscal 2025 revenue to be between $275 million and $285 million, a 5% decline from the lower end of its earlier forecast at the midpoint.

Franklin Covey (FC) stock fell nearly 9% in premarket trading on Thursday after the company missed Wall Street’s estimates for quarterly revenue.

The professional coaching firm posted fiscal second quarter revenue of $59.6 million, while Wall Street was expecting it to post $62.65 million, according to FinChat data.

Franklin Covey also reported a net loss of $1.07 million, or $0.08 per share, for the quarter that ended Feb. 28, compared with a profit of $874,000, or $0.06 per share, a year earlier.

The company said its enterprise division revenue for the second quarter fell to $43.6 million compared with $45.6 million a year earlier.

The decline was due to a $1.1 million fall in International Direct Office revenue and a $1 million decrease in North America segment revenue, which were impacted by canceled government contracts and macroeconomic and business environment uncertainties.

Its education division revenue in the second quarter rose 3% to $15.1 million, primarily due to increased training and coaching revenue, membership subscription revenue, and classroom materials sales.

The company now expects its fiscal 2025 revenue to be between $275 million and $285 million, a 5% decline from the lower end of its earlier forecast at the midpoint.

The Salt Lake City-based company said it did not anticipate the full impact of government actions and other business environment challenges, but it is taking actions to reduce costs.

One bearish trader said that artificial intelligence could do the company’s jobs.

Another trader expected to buy more of the stock if it fell between $20 and $21.

Franklin Covey shares have fallen 26.2% year-to-date (YTD).

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