Scholastic's revenue drops in crucial back-to-school quarter, stock drops more than 10%
Shares of Scholastic Inc. (SCHL) dropped more than 10% in the extended session Thursday after the publisher's revenue dropped in the crucial back-to-school quarter, mostly as Scholastic's book-club business dwindled, and the company called for lower earnings for fiscal 2024. Scholastic faces "a currently complex environment in U.S. schools," Chief Executive Peter Warwick said in a statement. Scholastic earned $76.9 million, or $2.45 a share, in the fiscal second quarter, compared with $75.3 million, or $2.12 a share, in the year-ago period. Revenue fell 4% to $562.6 million in the quarter, mostly "as a result of reduced, more targeted promotional spending and the elimination of unprofitable orders in book clubs," the company said. Scholastic dialed down its expectations for adjusted EBITDA to between $165 million and $175 million, compared with a previous range of $190 million to $200 million. Full-year revenue is expected to be about equal or slightly below the prior year, compared with earlier expectations of growth of 3% to 5%. There are no consensus numbers for Scholastic on FactSet.
-Claudia Assis
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
12-14-23 1623ET
Copyright (c) 2023 Dow Jones & Company, Inc.-
What’s Happening in the Markets This Week
-
Worst-Performing Stock ETFs of the Quarter
-
Q3 in Review and Q4 2024 Market Outlook
-
Top-Performing Stock ETFs of the Quarter
-
September Jobs Report Forecasts Show Moderate Hiring Gains
-
Port Strike a Headache for Shippers but a Potential Tailwind for Certain US Transport Stocks
-
13 Charts on Q3′s Roller-Coaster Rally for Stocks and Bonds
-
5 Stocks to Buy Instead of Overpriced US Equities
-
Consumer Defensives: Despite Angst, Thirsty Investors Have Names to Pursue
-
Industrials: Many Stocks Overvalued After Q3 Outperformance
-
Basic Materials: Despite Index Rise, We See Multiple Long-Term Opportunities
-
What the Election Could Mean for Big Tech Stocks
-
3 Lessons From Recent Stock Market Drama
-
Consumer Cyclicals: Even Amid Moderating Consumer Spending, We See Discounts
-
Healthcare: Valuations Look Fair Overall, With Select Industries Still Undervalued
-
Utilities: Falling Interest Rates, Growth Outlook Boosting Stocks