Franklin Covey's 20% EPS Miss Killed the Quick Rally-Next Catalyst Is Nov. 4

Q3 results missed, but the bigger issue was credibility

Franklin Covey's recent rally ran into a trust problem, not clear evidence that its products suddenly lost market value. The company reported Q3 EPS of $0.27 versus a $0.34 estimate, a 20.59% miss. Revenue was $67.8 million, just under the $68.33 million consensus. On the surface, that looks like an ordinary miss. For investors, though, the bigger concern was whether weaker reported numbers were becoming a pattern.