Benzinga | Jan 6, 2021 10:13AM EST

Earnings Preview for Franklin Covey

Franklin Covey (NYSE:FC) unveils its next round of earnings this Thursday, January 07. Get prepared with Benzinga's ultimate preview for Franklin Covey's Q1 earnings.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Based on management's projections, Franklin Covey analysts modeled for a loss of $0.14 per share on sales of $48.03 million. Franklin Covey EPS in the same period a year ago totaled $0.04. Revenue was $58.61 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to match the consensus estimate, earnings would be down 250.0%. Sales would be down 18.06% on a year-over-year basis. The company's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q4 2020 Q3 2020 Q2 2020 Q1 2020EPS Estimate -0.16 -0.30 -0.16 -0.02EPS Actual 0.07 -0.12 -0.07 -0.04Revenue Estimate 47.92 M 48.88 M 53.40 M 57.42 MRevenue Actual 48.99 M 37.10 M 53.74 M 58.61 M

Stock Performance

Over the last 52-week period, shares are down 29.06%. Given that these returns are generally negative, long-term shareholders won't be happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Franklin Covey is scheduled to hold the call at 17:00:00 ET and can be accessed here.