Franklin Covey Co. (NYSE:FC) fell 7.93% in after-hours on Wednesday as it missed the first-quarter estimates, but the management highlighted that the combined impact of its focused initiatives will boost future earnings, reaffirming its guidance for the current fiscal.

What Happened: Paul Walker, the president, CEO, and director of Franklin Covey highlighted two key areas of focus in 2025, including client penetration and onboarding new customers, also called, logo-hunting.

Talking about client penetration, he said that the previous fiscal's revenue per client expanded 218% to $85,000 from $39,000. Walker explained that this expansion occurs when organizations who have been utilizing one or more of its solutions renew and expand their subscription.

"Since our conversion to subscription, we've won thousands of new logos," Walker added during the call. Pegging this as Project Land, the company's focus in this area helped them get one of the five largest banks in America as a client. The coaching company, providing training and assessment services in the areas of leadership, individual effectiveness, and business execution partnered with this bank in the development of 2,000 of their leaders.

Why It Matters: CFO Steve Young reaffirmed the guidance provided at year-end, expecting revenue in the range of $295 million to $305 million in constant currency terms and adjusted EBITDA in the range of $40 million to $44 million. "We'll need to achieve accelerated revenue growth in the back half of the year, and we expect this to happen," Young said.

In the first quarter of the current fiscal its consolidated revenue increased to $69.1 million compared with $68.4 million in the same quarter of the previous fiscal. It missed Benzinga's estimate by 1.52%, which was pegged at $70.15 million.

The company earnings per share came in at $0.09, missing Benzinga's estimate by 59.1% of $0.22 per share. However, its liquidity remained strong at over $115 million, with $53.3 million of cash and no drawdowns on the company's $62.5 million credit facility.

Price Action: Franklin Covey shares have fallen by 7.93% over the last six months, underperforming the NYSE Composite Index, which rose by 6.61% in the same period.

According to Benzinga, FC has a consensus price target of $63.33 per share, with a 'buy' rating based on the ratings of three analysts. The highest price target out of all the analysts tracked by Benzinga is $95 issued by Northland Capital Markets as of March 28, 2024. The lowest target price is $45 per share issued by Barrington Research on Nov. 7, 2024.

The average price target between the recent ratings by Barrington Research and Roth MKM implies a 32.2% upside for Franklin Covey.

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