Shares of Franklin Covey (NYSE: FC) tumbled on Thursday following a revenue decline that fell short of expectations in the company's fiscal fourth quarter.
Disappointing Revenue Results
During afternoon trading, the stock dropped 10% to $34.745, hitting a 52-week low of $32.19 earlier in the day. So far this year, shares have fallen by 26%.
The Salt Lake City-based organizational training company reported a decrease in sales to $78 million for the quarter ending August 31st. This figure is down from $78.8 million during the same period last year. Franklin Covey had initially projected revenue of $81.4 million, while analysts surveyed by FactSet had anticipated $81.6 million.
Profit and Expectations
Despite the revenue miss, Franklin Covey managed to achieve a fourth-quarter profit of $6.81 million, equating to $0.49 per share. In comparison, the company reported a profit of $5.58 million, or $0.39 per share, during the same quarter a year ago. Analysts had expected a profit of $0.49 per share.
Factors Affecting Sales
Franklin Covey attributed the decline in sales to reduced demand for its legacy products and services. Additionally, the enterprise division experienced fewer on-site presentations, and there was a decrease in materials sales within the education division.
Future Outlook
Despite economic challenges, Franklin Covey remains optimistic about its future performance. The company expects adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) for fiscal year 2024 to range between $54.5 million and $58 million.
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