Scholastic Shares Fall After Worse-Than-Expected Q4 Results: Details

Author: Erica Kollmann | July 18, 2024 04:58pm

Scholastic Corporation (NASDAQ:SCHL) reported its fourth-quarter financial results Thursday. Here's a look at the key figures from the report. 

The Details: Scholastic reported quarterly earnings of $1.73 per share which missed the analyst consensus estimate of $2.66 by 34.96% and represents a 23.45% decrease in earnings from the same period last year.

Quarterly sales came in at $474.9 million which missed the analyst consensus estimate of $552.496 million by 14.04% and is a 10.11% decrease year-over-year.

“Scholastic made significant progress last quarter advancing our 360-degree content creation strategy, as we expand our opportunities as a global children’s media company,” said Peter Warwick, CEO of Scholastic.

“With the addition of the award-winning 9 Story Media Group to our portfolio, announced in March and closed last month, our new Scholastic Entertainment segment has gained industry-leading production, distribution and licensing capabilities, an extensive children’s content library, and a highly talented team,” Warwick added.

Read More: Discover Reports Better-Than-Expected Q2 Results: Here’s The Details

Outlook: Scholastic expects fiscal 2025 revenue growth of 4% to 6% and is targeting Adjusted EBITDA of $140 to $150 million, reflecting the partial-year contribution of 9 Story Media Group, partially offset by continuing spending on key growth initiatives and the impact of ongoing pressure on consumer and school spending. In its fiscal first quarter, the company expects a seasonal loss approximately in line with the prior year.

SCHL Price Action: According to Benzinga Pro, Scholastic Corporation shares are down 6.97% after-hours at $34.01 at the time of publication Thursday.

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Image: Gerd Altmann from Pixabay

Posted In: SCHL