Franchise Group, Inc. (NASDAQ:FRG) Expected to Post Earnings of $1.20 Per Share

Brokerages expect that Franchise Group, Inc. (NASDAQ:FRG) will announce earnings of $1.20 per share for the current quarter, Zacks reports. Two analysts have made estimates for Franchise Group’s earnings, with the highest EPS estimate coming in at $1.59 and the lowest estimate coming in at $0.80. Franchise Group reported earnings of $2.11 per share in the same quarter last year, which would indicate a negative year-over-year growth rate of 43.1%. The business is expected to report its next quarterly earnings results on Monday, January 1st.

On average, analysts expect that Franchise Group will report full year earnings of $3.42 per share for the current year, with EPS estimates ranging from $3.25 to $3.76. For the next year, analysts forecast that the business will post earnings of $3.89 per share, with EPS estimates ranging from $3.57 to $4.25. Zacks’ EPS averages are an average based on a survey of research analysts that cover Franchise Group.

Franchise Group (NASDAQ:FRG) last issued its quarterly earnings data on Tuesday, March 9th. The company reported $0.35 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.11 by $0.24. The firm had revenue of $496.32 million during the quarter, compared to analyst estimates of $498.13 million. Franchise Group had a return on equity of 12.37% and a net margin of 0.94%.

A number of research analysts recently commented on FRG shares. Barrington Research increased their price target on shares of Franchise Group from $40.00 to $48.00 and gave the company an “outperform” rating in a report on Thursday, March 11th. They noted that the move was a valuation call. Zacks Investment Research raised shares of Franchise Group from a “hold” rating to a “buy” rating and set a $45.00 price objective for the company in a research note on Tuesday, March 16th. DA Davidson raised their price objective on shares of Franchise Group from $40.00 to $49.00 and gave the stock a “buy” rating in a research note on Thursday, March 11th. B. Riley raised their price objective on shares of Franchise Group from $38.00 to $46.00 and gave the stock a “buy” rating in a research note on Thursday, March 11th. Finally, CJS Securities started coverage on shares of Franchise Group in a research note on Tuesday, December 15th. They issued an “outperform” rating and a $40.00 price objective for the company. One research analyst has rated the stock with a hold rating and five have issued a buy rating to the stock. The stock presently has an average rating of “Buy” and an average target price of $43.50.

Shares of Franchise Group stock traded down $0.37 during trading on Thursday, reaching $36.31. 6,509 shares of the stock traded hands, compared to its average volume of 159,351. The business has a fifty day simple moving average of $36.74 and a two-hundred day simple moving average of $31.23. The company has a current ratio of 1.13, a quick ratio of 0.53 and a debt-to-equity ratio of 1.26. Franchise Group has a 52-week low of $8.98 and a 52-week high of $41.50.

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, April 15th. Investors of record on Wednesday, March 31st will be issued a dividend of $0.375 per share. This represents a $1.50 annualized dividend and a yield of 4.13%. The ex-dividend date is Tuesday, March 30th.

In other Franchise Group news, major shareholder Vintage Capital Management Llc acquired 757,000 shares of the business’s stock in a transaction that occurred on Tuesday, January 26th. The shares were bought at an average cost of $34.95 per share, with a total value of $26,457,150.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 46.00% of the company’s stock.

Several institutional investors have recently modified their holdings of the business. BlackRock Inc. raised its position in shares of Franchise Group by 20.7% in the fourth quarter. BlackRock Inc. now owns 1,624,187 shares of the company’s stock worth $49,457,000 after acquiring an additional 278,647 shares during the period. Hood River Capital Management LLC grew its stake in Franchise Group by 2.1% during the 4th quarter. Hood River Capital Management LLC now owns 1,394,429 shares of the company’s stock valued at $42,460,000 after acquiring an additional 28,838 shares in the last quarter. Wells Fargo & Company MN grew its stake in Franchise Group by 4.2% during the 4th quarter. Wells Fargo & Company MN now owns 915,515 shares of the company’s stock valued at $27,877,000 after acquiring an additional 37,228 shares in the last quarter. Punch & Associates Investment Management Inc. grew its stake in shares of Franchise Group by 238.4% in the 4th quarter. Punch & Associates Investment Management Inc. now owns 365,704 shares of the company’s stock valued at $11,136,000 after buying an additional 257,644 shares during the period. Finally, Bank of New York Mellon Corp grew its stake in shares of Franchise Group by 133.6% in the 4th quarter. Bank of New York Mellon Corp now owns 307,592 shares of the company’s stock valued at $9,367,000 after buying an additional 175,944 shares during the period. Institutional investors and hedge funds own 43.32% of the company’s stock.

About Franchise Group

Franchise Group, Inc operates as a retailer, franchisor operator, and acquirer of franchised and franchisable businesses. It operates through 4 segments: Liberty Tax, Buddy's, Sears Outlet, and Vitamin Shoppe. The company provides tax preparation services in the United States and Canada; and franchises and operates rent-to-own stores that lease durable goods, such as electronics, residential furniture, appliances, and household accessories to customers.

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Earnings History and Estimates for Franchise Group (NASDAQ:FRG)

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