Franchise Group shares rallied 8.7% in the last trading session to close at $38.64. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 1.6% gain over the past four weeks.
Shares of Franchise Group got a boost as the company announced that it has closed the buyout of Sylvan Learning, which is anticipated to augment adjusted earnings per share of the former immediately in 2021. For fiscal 2021, Sylvan anticipates total systemwide revenues of roughly $169 million, company revenue of about $30 million and adjusted EBITDA of around $12 million.
A growing tutoring services franchisor, Sylvan caters to a wide range of student needs – covering several academic curriculums offered in an omnichannel format. Sylvan’s robust footprint and solid omnichannel platform are likely to benefit Franchise Group. This buyout will help Franchise Group diversify further into consumer services.
This tax preparer is expected to post quarterly earnings of $0.80 per share in its upcoming report, which represents a year-over-year change of +463.6%. Revenues are expected to be $799.24 million, up 45.1% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Franchise Group, the consensus EPS estimate for the quarter has been revised 3% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on FRG going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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Franchise Group (FRG) Surges 8.7%: Is This an Indication of Further Gains?
Franchise Group shares rallied 8.7% in the last trading session to close at $38.64. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 1.6% gain over the past four weeks.
Shares of Franchise Group got a boost as the company announced that it has closed the buyout of Sylvan Learning, which is anticipated to augment adjusted earnings per share of the former immediately in 2021. For fiscal 2021, Sylvan anticipates total systemwide revenues of roughly $169 million, company revenue of about $30 million and adjusted EBITDA of around $12 million.
A growing tutoring services franchisor, Sylvan caters to a wide range of student needs – covering several academic curriculums offered in an omnichannel format. Sylvan’s robust footprint and solid omnichannel platform are likely to benefit Franchise Group. This buyout will help Franchise Group diversify further into consumer services.
This tax preparer is expected to post quarterly earnings of $0.80 per share in its upcoming report, which represents a year-over-year change of +463.6%. Revenues are expected to be $799.24 million, up 45.1% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Franchise Group, the consensus EPS estimate for the quarter has been revised 3% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on FRG going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>