By Connor Hart
Shares of Franklin Covey fell after the company cut its outlook for the year and reported underwhelming fiscal third-quarter revenue.
The stock tumbled 24%, to $19, in after-hours trading Wednesday. Through the market close, shares were up nearly 50% year to date.
The company, which helps other businesses train employees, said it now expects annual revenue to come in between $260 million and $267 million, down from a prior forecast of $265 million to $275 million.
Franklin Covey also lowered the high end of its outlook for adjusted Ebitda — or earnings before interest, taxes, depreciation and amortization — to $31 million from $33 million, while maintaining the low end at $28 million.
Analysts polled by FactSet are looking for adjusted Ebitda of $29.4 million on revenue of $267.7 million.
The new guidance came as the company swung to a profit of $3.09 million for its three months ended May 31, from a loss of $1.41 million a year earlier. Quarterly earnings of 27 cents a share were in line with analyst forecasts.
Revenue ticked up 1% to $67.8 million but missed Wall Street models for $68.3 million.
Chief Executive Paul Walker said the company's education business was unexpectedly hurt by a last-minute state budget reduction that removed funding for a large state contract.
Write to Connor Hart at connor.hart@wsj.com