Franklin Covey Ascends 12% As Earnings Beat Estimates

Shares of Franklin Covey Co. (FC) are rising more than 12% Thursday morning after reporting better-than-expected third-quarter earnings.

Franklin Covey provides training and consulting services in the areas of execution, sales performance, productivity, customer loyalty, and educational improvement for organizations and individuals.

Third quarter net income declined to $7.2 million, or $0.51 per share, compared with $12.8 million, or $0.90 per diluted share, in the prior year, as the company had income tax benefit of $10.15 million last year. In the latest quarter, the company reported income tax benefit of $1.6 million.

On average, analysts polled by Thomson Reuters expected the company to report earnings of $0.18 per share.

Sales for the quarter increased 13% to $66.2 million from $58.7 million last year due to strong subscription and subscription services sales.

The company increased its full-year adjusted EBITDA outlook to the range of $40 million-$41.5 million from $38.0 million-$39.0 million.

FC is at $42.73 currently. It has traded in the range of $31.88-$52.52 in the last 1 year.

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