Franchise Group (NASDAQ:FRG) Posts Quarterly Earnings Results

Franchise Group (NASDAQ:FRGGet Rating) issued its quarterly earnings data on Thursday. The company reported $1.19 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.23 by ($0.04), Briefing.com reports. The firm had revenue of $1.09 billion for the quarter, compared to analysts’ expectations of $1.14 billion. Franchise Group had a return on equity of 26.34% and a net margin of 9.61%. The business’s revenue for the quarter was up 26.8% compared to the same quarter last year. During the same period in the previous year, the business posted $1.16 EPS. Franchise Group updated its FY 2022 guidance to $4.00-$4.00 EPS and its FY22 guidance to $4.00 EPS.

Franchise Group Stock Performance

Shares of NASDAQ FRG traded down $2.78 during midday trading on Friday, reaching $31.34. 982,000 shares of the company were exchanged, compared to its average volume of 359,995. The company has a current ratio of 1.42, a quick ratio of 0.75 and a debt-to-equity ratio of 1.71. Franchise Group has a 1 year low of $29.66 and a 1 year high of $55.10. The stock has a fifty day simple moving average of $35.13 and a 200 day simple moving average of $39.84. The stock has a market cap of $1.26 billion, a P/E ratio of 3.63, a PEG ratio of 0.47 and a beta of 1.61.

Franchise Group Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, October 14th. Investors of record on Friday, September 30th will be issued a dividend of $0.625 per share. This represents a $2.50 dividend on an annualized basis and a dividend yield of 7.98%. The ex-dividend date of this dividend is Thursday, September 29th. Franchise Group’s dividend payout ratio is currently 28.97%.

Insider Buying and Selling

In related news, CEO Brian Randall Kahn purchased 100,000 shares of the stock in a transaction that occurred on Monday, May 9th. The shares were purchased at an average price of $37.50 per share, with a total value of $3,750,000.00. Following the completion of the acquisition, the chief executive officer now directly owns 8,864,610 shares in the company, valued at approximately $332,422,875. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Corporate insiders own 32.30% of the company’s stock.

Hedge Funds Weigh In On Franchise Group

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Renaissance Technologies LLC lifted its position in Franchise Group by 17.7% in the first quarter. Renaissance Technologies LLC now owns 62,500 shares of the company’s stock valued at $2,589,000 after purchasing an additional 9,400 shares during the period. Sei Investments Co. lifted its position in Franchise Group by 2.4% in the first quarter. Sei Investments Co. now owns 52,993 shares of the company’s stock valued at $2,199,000 after purchasing an additional 1,254 shares during the period. Verition Fund Management LLC lifted its position in Franchise Group by 101.4% in the first quarter. Verition Fund Management LLC now owns 50,345 shares of the company’s stock valued at $2,086,000 after purchasing an additional 25,345 shares during the period. Invesco Ltd. lifted its position in Franchise Group by 62.8% in the first quarter. Invesco Ltd. now owns 27,172 shares of the company’s stock valued at $1,126,000 after purchasing an additional 10,483 shares during the period. Finally, JPMorgan Chase & Co. lifted its position in Franchise Group by 16.9% in the first quarter. JPMorgan Chase & Co. now owns 21,011 shares of the company’s stock valued at $871,000 after purchasing an additional 3,040 shares during the period. Hedge funds and other institutional investors own 45.51% of the company’s stock.

Wall Street Analyst Weigh In

Separately, B. Riley dropped their price objective on Franchise Group from $63.00 to $49.00 in a report on Friday.

About Franchise Group

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Franchise Group, Inc owns and operates franchised and franchisable businesses. It operates through six segments: Vitamin Shoppe, Pet Supplies Plus, Badcock, American Freight, Buddy's, and Sylvan. The Vitamin Shoppe segment operates as an omnichannel specialty retailer of vitamins, minerals, herbs, specialty supplements, sports nutrition, and other health and wellness products under the BodyTech, True Athlete, plnt, The Vitamin Shoppe, ProBioCare, Fitfactor Weight Management System, and Vthrive The Vitamin Shoppe brands.

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Earnings History for Franchise Group (NASDAQ:FRG)

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