The stock fell to $19, a jarring reversal for investors who had enjoyed a 50% rise in the company’s share price year-to-date. Franklin Covey now anticipates annual revenue between $260 million and $267 million, a downward shift from its previous guidance of $265 million to $275 million. The firm also lowered the upper bound of its adjusted Ebitda forecast to $31 million, holding the low end steady at $28 million.
In section Market Quotes
Franklin Covey Shares Plunge After Weak Guidance
A 24% nosedive in after-hours trading wiped out significant gains for Franklin Covey on Wednesday, as the corporate training firm slashed its annual revenue forecast. The sharp drop followed a fiscal third-quarter performance that failed to meet Wall Street expectations, despite the company finally swinging back into profitability.
Chief Executive Paul Walker attributed the shortfall to an unexpected state budget cut that derailed a significant education contract. While the company reported a profit of $3.09 million for the quarter ending May 31—an improvement over the $1.41 million loss recorded during the same period last year—its revenue of $67.8 million narrowly missed analyst projections of $68.3 million.
Comments (0)
No comments yet. Be the first!