Latest news with #FranklinCoveyCo
Yahoo
07-05-2025
- Business
- Yahoo
Here's Why Greystone Capital Sold Franklin Covey (FC) in Q1
Greystone Capital Management, an investment management company, released its first-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter, the median account return for separate accounts managed by the firm was -7.9%, net of fees. The fund unfavorably and favorably compared to the S&P 500 and Russell 2000 returns of -4.2% and -9.5% during the quarter. Client portfolios are concentrated in small companies mostly outside major indices, leading to returns that typically differ from those indices. In addition, you can check the fund's top 5 holdings to find out its best picks for 2025. In its first-quarter 2025 investor letter, Greystone Capital Management highlighted stocks such as Franklin Covey Co. (NYSE:FC). Franklin Covey Co. (NYSE:FC) offers training and consultation services in organizational performance improvement areas. The one-month return of Franklin Covey Co. (NYSE:FC) was -2.56%, and its shares lost 47.32% of their value over the last 52 weeks. On May 6, 2025, Franklin Covey Co. (NYSE:FC) stock closed at $20.53 per share with a market capitalization of $266.637 million. Greystone Capital Management stated the following regarding Franklin Covey Co. (NYSE:FC) in its Q1 2025 investor letter: "During the quarter, we sold our position in Franklin Covey Co. (NYSE:FC). Although we are long-term investors, the uncertainty of the near-term environment may prove to be a large headwind for the business, and my prior estimates of cash flows have been very wrong up to this point. I was also blindsided by the company's recently reduced guidance (for the second time) for FY25, which along with some other management blunders that has caused me to lose some faith. My loss of confidence combined with better current opportunities were the primary reasons behind the decision to part ways." Franklin Covey (FC) Introduces AI Coach to Elevate Leadership Training An executive delivering a keynote presentation on improving sales performance at a corporate event. Franklin Covey Co. (NYSE:FC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Franklin Covey Co. (NYSE:FC) at the end of the fourth quarter, compared to 16 in the third quarter. In Q2 2025, Franklin Covey Co.'s (NYSE:FC) revenue was $59.6 million ($60.1 million in constant currency), slightly down from $61.3 million in Q2 last year, primarily due to recent government contract cancellations. While we acknowledge the potential of Franklin Covey Co. (NYSE:FC) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
Yahoo
03-04-2025
- Business
- Yahoo
Franklin Covey Co (FC) Q2 2025 Earnings Call Highlights: Navigating Revenue Challenges with ...
Revenue: $59.6 million for Q2, or $60.1 million in constant currency, slightly below the $61.3 million from Q2 last year. Adjusted EBITDA: $2.1 million for the quarter, or $2.6 million in constant currency. Government Revenue Impact: Approximately $5 million in government revenue canceled or postponed. International Revenue Impact: Expected to be down by as much as $4 million due to external factors. Education Revenue Impact: Potential $3 million impact due to federal funding uncertainties. Revised Annual Revenue Guidance: Between $275 million and $285 million, down from the original guidance. Revised Annual Adjusted EBITDA Guidance: Between $30 million and $33 million. Multi-Year Contracts: 61% of subscription revenue under multi-year contracts. New Logo Sales Growth: Pacing to achieve approximately 40% growth for the year. Education Revenue Growth: Up 3% in Q2 and 7% year-to-date. Cash Flow and Liquidity: More than $100 million in liquidity, with $14.7 million invested in share repurchases in the first half of the year. Q3 Revenue Guidance: Between $67 million and $71 million. Q3 Adjusted EBITDA Guidance: Between $4 million and $6.5 million. Warning! GuruFocus has detected 8 Warning Signs with RH. Release Date: April 02, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Franklin Covey Co (NYSE:FC) is experiencing significant traction in its go-to-market transformation in the Enterprise North America business. The education business remains strong, with education revenue growing 3% in the second quarter and 7% year-to-date. The company has seen a 40% growth in new logo sales for the year, exceeding its new logo plan by more than 50% in the second quarter. There is a high renewal rate for subscriptions, with 61% of subscription revenue under multi-year contracts. Franklin Covey Co (NYSE:FC) has a strong cash position with more than $100 million in liquidity, allowing for continued share repurchases and growth investments. The company is facing revenue impacts due to government-related actions, with approximately $5 million in government revenue already canceled or postponed. International revenues are expected to be down by as much as $4 million due to trade tensions and political factors, particularly in China. There is potential for a $3 million impact on education revenue due to uncertainty about federal funding changes. The company has adjusted its revenue guidance for the fiscal year to be between $275 million and $285 million, down from previous expectations. Adjusted EBITDA guidance has been lowered to between $30 million and $33 million, reflecting the impact of government actions and reduced revenue. Q: Can you clarify the impact of government-related revenue on your business? A: Paul Walker, CEO, explained that approximately 6% or $17 million of Franklin Covey's revenue is tied to government entities, primarily federal. The impact of government actions, including cancellations and postponements, has led to a decline in revenue, particularly affecting the Department of Defense, Veterans Affairs, and other agencies. The company does not expect to recover this revenue within the current fiscal year. Q: How is the education business being affected by federal government changes? A: Paul Walker noted that while the Department of Education is not a direct client, changes at the federal level could cause uncertainty at the state level, potentially impacting decision-making and causing a $3 million revenue impact. However, the majority of education funding comes from state and local sources, and the company expects these funds to continue flowing, albeit possibly from different agencies. Q: What is the status of the North American enterprise sales force restructuring and its impact? A: Paul Walker confirmed that the restructuring is on schedule, with investments in new personnel already made. The company is seeing positive early momentum, with new logo sales exceeding expectations by 50% in the second quarter. The focus remains on expanding the sales force to drive future growth. Q: How does the company plan to manage potential economic downturns or recessions? A: Paul Walker highlighted the durability of their subscription model, with 55% of contracts being multi-year. This provides a buffer against economic downturns. The company also plans to direct its sales force towards solutions that are critical for clients during challenging times, such as execution and sales performance solutions. Q: What are the expectations for free cash flow and share buybacks? A: Stephen Young, CFO, stated that despite the challenges, the company expects to generate positive free cash flow for the full fiscal year. They have been actively buying back shares, indicating confidence in the business fundamentals, and will continue to evaluate share repurchases based on cash availability and market conditions. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
21-03-2025
- Business
- Yahoo
Franklin Covey (NYSE:FC) shareholders have earned a 10% CAGR over the last five years
Franklin Covey Co. (NYSE:FC) shareholders might be concerned after seeing the share price drop 22% in the last quarter. But at least the stock is up over the last five years. Unfortunately its return of 64% is below the market return of 130%. While the long term returns are impressive, we do have some sympathy for those who bought more recently, given the 29% drop, in the last year. So let's assess the underlying fundamentals over the last 5 years and see if they've moved in lock-step with shareholder returns. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. During the five years of share price growth, Franklin Covey moved from a loss to profitability. That's generally thought to be a genuine positive, so investors may expect to see an increasing share price. Given that the company made a profit three years ago, but not five years ago, it is worth looking at the share price returns over the last three years, too. In fact, the Franklin Covey stock price is 38% lower in the last three years. Meanwhile, EPS is up 4.9% per year. It would appear there's a real mismatch between the increasing EPS and the share price, which has declined -15% a year for three years. You can see how EPS has changed over time in the image below (click on the chart to see the exact values). We know that Franklin Covey has improved its bottom line lately, but is it going to grow revenue? This free report showing analyst revenue forecasts should help you figure out if the EPS growth can be sustained. Investors in Franklin Covey had a tough year, with a total loss of 29%, against a market gain of about 9.2%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn't be so upset, since they would have made 10%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. It's always interesting to track share price performance over the longer term. But to understand Franklin Covey better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for Franklin Covey you should be aware of. If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: many of them are unnoticed AND have attractive valuation). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
27-01-2025
- Business
- Yahoo
Franklin Covey Co. (FC) Was Punished For Doing The Right Thing. Here's Why
Greystone Capital Management, an investment management company, released its fourth-quarter 2024 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the return for separate accounts managed by the firm ranged from +0.5 to +2.6%. The median account returned +1.7%, net of fees bringing the yearly returns to +19.9%. The strategy returned a cumulative +168.8% or +24.3% per year, net of fees, since inception in Q4 2019 and outperformed both the S&P 500 and the Russell 2000 by an annualized +6.0% and +14.1% per year. The results for the fourth quarter and FY2024 compare both negatively and positively to the returns of the S&P 500 and Russell 2000, which were +2.4% and +0.3% for the quarter and +25.0% and +11.5% for the entire year. In addition, you can check the fund's top 5 holdings to find out its best picks for 2024. Greystone Capital Management highlighted stocks like Franklin Covey Co. (NYSE:FC), in the fourth quarter 2024 investor letter. Franklin Covey Co. (NYSE:FC) offers training and consultation services in organizational performance improvement areas. The one-month return of Franklin Covey Co. (NYSE:FC) was -5.08%, and its shares lost 17.25% of their value over the last 52 weeks. On January 24, 2024, Franklin Covey Co. (NYSE:FC) stock closed at $35.12 per share with a market capitalization of $463.43 million. Greystone Capital Management stated the following regarding Franklin Covey Co. (NYSE:FC) in its Q4 2024 investor letter: "For an example closer to home, one of our companies, Franklin Covey Co. (NYSE:FC), recently announced that near term cash flows would decline as they invest more into their salesforce to grow the business. These high return investments are expected to raise long-term revenue growth, margins and cash flow (to record levels) yet the stock declined -20% following the announcement as the short-term outlook muddied the long-term picture. In other words, Franklin Covey was punished for doing the right thing. If the success of our investment hinged on a three-month period, we'd be in trouble." An executive delivering a keynote presentation on improving sales performance at a corporate event. Franklin Covey Co. (NYSE:FC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 16 hedge fund portfolios held Franklin Covey Co. (NYSE:FC) at the end of the third quarter which was 15 in the previous quarter. In the fiscal first quarter of 2025, Franklin Covey Co.'s (NYSE:FC) revenue grew 1% to $69.1 million compared to $68.4 million in Q1 2024. While we acknowledge the potential of Franklin Covey Co. (NYSE:FC) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey.
