A Preview Of Franklin Covey's Earnings

Franklin Covey FC unveils its next round of earnings this Wednesday, June 30. Get prepared with Benzinga's ultimate preview for Franklin Covey's Q3 earnings.

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

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Sell-side analysts are expecting Franklin Covey's loss per share to be near $0.07 on sales of $51.60 million. In the same quarter last year, Franklin Covey posted a loss of $0.12 per share on sales of $37.10 million.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The Wall Street consensus estimate for earnings would represent a 41.67% increase for the company. Revenue would be up 39.06% on a year-over-year basis. The company's reported EPS has stacked up against analyst estimates in the past like this:

Stock Performance

For a full 12 months, the return has risen by 50.6%. Given that these returns are generally positive, long-term shareholders are probably relaxed going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

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.