Sales decline and profit disappoint investors

  • Franklin Covey shares fall 9.9% after 4Q revenue misses estimates
  • Sales fell to $78 million in the quarter, compared to $78.8 million a year earlier
  • Fourth-quarter profit of $6.81 million, or 49 cents a share
  • Lower sales of legacy products and services, fewer onsite presentations, and lower materials sales
  • Franklin Covey expects fiscal 2024 adjusted EBITDA of $54.5 million to $58 million

Shares of Franklin Covey fell 9.9% after the company’s revenue in the fiscal fourth quarter missed forecasts. Sales declined to $78 million, compared to $78.8 million a year earlier. The company reported a fourth-quarter profit of $6.81 million, or 49 cents a share. The decline in sales was attributed to lower sales of legacy products and services, fewer onsite presentations in the enterprise division, and lower materials sales in the education division. Despite economic headwinds, Franklin Covey expects to achieve fiscal 2024 adjusted EBITDA of $54.5 million to $58 million.

Factuality Level: 7
Factuality Justification: The article provides specific information about Franklin Covey’s revenue falling and missing forecasts in the fiscal fourth quarter. It includes details about the stock price decline, sales figures, and profit. The information is sourced from FactSet and includes the company’s own statements. However, the article does not provide a comprehensive analysis of the reasons behind the revenue decline or the potential impact of economic headwinds on future results.
Noise Level: 3
Noise Justification: The article provides relevant information about Franklin Covey’s financial performance in the fiscal fourth quarter, including the reasons for the decline in revenue and missed forecasts. It includes specific figures and compares them to previous periods and analyst expectations. However, it lacks in-depth analysis, antifragility considerations, and accountability of powerful people. It also does not provide actionable insights or solutions.
Financial Relevance: Yes
Financial Markets Impacted: Shares of Franklin Covey
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article pertains to the financial performance of Franklin Covey, a company whose shares fell after its revenue missed forecasts in the fiscal fourth quarter. There is no mention of an extreme event.
Public Companies: Franklin Covey (N/A)
Key People:

Reported publicly: www.marketwatch.com