SCHOLASTIC CORPORATION Reports 10.2% Increase in Revenue and 12.2% Increase in Net Income for FY2023 Q2

Earnings report

On December 15, 2022, SCHOLASTIC CORPORATION ($NASDAQ:SCHL) reported its earnings results for the second quarter of fiscal year 2023, ending November 30, 2022. SCHOLASTIC CORPORATION is a publicly traded company that specializes in providing educational materials, technology, and services to both schools and parents. The company has operations in the United States, Canada, India, and the United Kingdom. The company reported total revenue of USD 75.3 million for the quarter, representing a 10.2% year-over-year increase. Reported net income was USD 587.9 million, up 12.2% year-on-year.

This was attributed to strong performance in the company’s educational publishing and technology divisions. Overall, SCHOLASTIC CORPORATION reported strong performance in its second quarter of fiscal year 2023. The company’s revenue and net income grew by 10.2% and 12.2%, respectively, year-over-year, driven by strong performance in its educational publishing and technology divisions. The company’s outlook for the rest of fiscal year 2023 looks positive as well, as it has continued to invest in product development and marketing efforts to ensure growth.

Market Price

On Thursday, SCHOLASTIC CORPORATION reported that their revenue had jumped 10.2% and net income had increased by 12.2% in the second quarter of FY2023. The news sent the stock price of SCHOLASTIC CORPORATION lower, opening at $35.9 and closing at $35.0, down by 4.0% from the previous closing price of 36.4. The increase in revenue was driven by strong sales of educational resources, including books and digital educational materials. SCHOLASTIC CORPORATION’s digital portfolio saw a significant rise in usage due to the pandemic, which led to an increase in sales of digital products. The company also benefited from a favorable economic environment, as consumers had more money to spend on educational resources.

The company’s net income for the quarter rose by 12.2%, largely due to cost cutting measures such as reducing operating expenses and eliminating unused assets. SCHOLASTIC CORPORATION also implemented new strategies to improve their digital presence, which has helped to drive revenue growth. Overall, the company’s strong performance for the quarter signals a strong outlook for the rest of the year. SCHOLASTIC CORPORATION remains committed to providing quality educational resources and will continue to invest in new technologies and strategies to remain competitive in the market. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Scholastic Corporation. More…

Cash Flow Snapshot

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Balance Sheet Snapshot

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Key Ratios Snapshot

Some of the financial key ratios for Scholastic Corporation are shown below. More…

VI Analysis

SCHOLASTIC CORPORATION‘s fundamentals reflect its long term potential, and this can be seen through the use of the VI app. The VI Star Chart shows that SCHOLASTIC CORPORATION is classified as a ‘cheetah’, a type of company that has achieved high revenue or earnings growth but is considered less stable due to lower profitability. Investors who may be interested in such a company are those who seek high-growth opportunities and are willing to take on the additional risk that comes with it. The company has a high health score of 8/10 with regard to its cashflows and debt, indicating that it is capable of paying off debt and funding future operations. SCHOLASTIC CORPORATION is strong when it comes to assets, dividends, and has a medium score in regards to growth and profitability. Overall, SCHOLASTIC CORPORATION is a good choice for investors who have an appetite for higher risk investments with the potential for high returns. Although it is not as stable as some of its peers, its fundamentals suggest that it has the potential to grow significantly in the long term. More…

VI Peers

The company was founded in 1920 and is headquartered in New York City. Scholastic operates in the United States, Canada, Australia, New Zealand, the United Kingdom, and Ireland. The company’s primary competitors are Hanoi Education Investment And Development Joint Stock Co, Sasbadi Holdings Bhd, Educational Book JSC in Ho Chi Minh City.

– Hanoi Education Investment And Development Joint Stock Co ($HNX:EID)

Sasbadi Holdings Bhd is a provider of educational resources and solutions in Malaysia. The company offers a range of products and services, including textbooks, workbooks, e-learning solutions, and professional development services. Sasbadi Holdings Bhd is listed on the Bursa Malaysia Stock Exchange and has a market capitalization of 46.7 million as of 2021. The company has a Return on Equity of -5.29%.

Summary

SCHOLASTIC CORPORATION‘s recent financial results have been encouraging, with total revenue of USD 75.3 million and net income of USD 587.9 million for FY2023 Q2. This represents a 10.2% and 12.2% year-on-year increase respectively, indicating strong financial performance. Despite this, the stock price dropped on the same day as the announcement, suggesting that investors may be expecting more from the company. Investors should consider several factors when evaluating SCHOLASTIC CORPORATION’s prospects. Firstly, the company’s revenue growth should be monitored carefully in order to identify any potential weaknesses in its business model. Moreover, investors should look at the company’s cash flow and debt levels, as well as its dividend policy, to judge its overall financial health. Furthermore, they should examine the company’s competitive advantages and its ability to generate a return on equity. Overall, SCHOLASTIC CORPORATION appears to be performing well financially and has a lot of potential for further growth.

However, investors should conduct a thorough analysis of the company before making any decisions about investing in it.