Shares of training and consulting services provider Franklin Covey Co. (FC) have climbed 110% over the past year. The company recently posted better-than-estimated first-quarter performance on both its top-line as well as bottom-line fronts.
Buoyed by double-digit growth in the Subscription services and Education Division, sales increased 27% year-over-year to $61.3 million, and exceeded analysts’ estimates by $5.9 million. Earnings per share at $0.27 came in ahead of expectations by $0.24.
With these developments in mind, let us take a look at the changes in FC’s key risk factors that investors should know.
Risk Factors
According to the TipRanks Risk Factors tool, Franklin Covey’s top risk category is Finance & Corporate, contributing 36% to the total 25 risks identified. In its recent report, the company has changed one key risk factor under the Macro & Political risk category.
FC highlighted the challenges posed by the COVID-19 pandemic. The company’s operations have seen a negative impact due to COVID-19 and this impact could continue in the future. Factors such as client demand for FC’s services, its ability to conduct in-person programs, travel restrictions, any closure of offices, or clients’ ability to pay for FC’s services could affect the company’s performance.
Compared to a sector average of 11%, FC’s Macro & Political risk factor is at 16%.
Wall Street’s Take
On January 7, Barrington analyst Alexander Paris reiterated a Buy rating on the stock and increased the price target to $60 from $55 (18.4% potential upside).
Wall Street’s top analysts have a Moderate Buy Consensus rating on FC based on 2 unanimous Buys. The average Franklin Covey price target of $56.50 implies a potential upside of 11.5%.
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