By Kelly Cloonan
Shares of Franklin Covey rose after the company's latest quarterly sales beat analyst forecasts as it starts to see the benefits of changes to its go-to-market strategy.
The stock gained 10% to $17.79 in after-hours trading on Wednesday. Through market close, shares have fallen 3% year to date.
The company, which helps other businesses train employees, posted a fiscal second-quarter loss of $2 million, or 17 cents a share, compared with a loss of $1.1 million, or 8 cents a share, a year earlier. Analysts polled by FactSet expected earnings of 3 cents a share.
Revenue was flat at $59.6 million, compared with analyst estimates of $58.7 million.
By segment, education revenue climbed 16%, driven by higher training, coaching, materials and membership subscription sales. Enterprise revenue declined.
Chief Executive Paul Walker said the company's go-to-market strategy is gaining traction, with continued invoiced growth for its enterprise business in North America.
"We believe we are at an inflection point where the return on investment from our transformation is becoming evident," Walker said.
For fiscal 2026, Franklin Covey continues to expect sales of $265 million to $275 million, the midpoint of which is above Wall Street's forecast of $267.1 million.
The company said it expects to return to growth as it reaps the benefits of changes to its go-to-market strategy as well as efforts to cut costs.
Write to Kelly Cloonan at kelly.cloonan@wsj.com
(END) Dow Jones Newswires
April 01, 2026 17:27 ET (21:27 GMT)
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