Scholastic Corporation Reports Lower-than-Expected EPS and Revenue
December 15, 2023
🌥️Trending News
The Scholastic Corporation ($NASDAQ:SCHL), a publicly traded educational publishing, media, and technology company, has recently reported lower-than-expected EPS and revenue. Their Non-GAAP EPS of $2.45 fell short of analyst estimates by $0.20, while revenue of $562.6M was lower than the expected $62.63M. Scholastic also operates a comprehensive digital education portfolio, providing interactive learning experiences for students across all grades. The company reported that the results were primarily due to disruptions in their school customers’ buying patterns as they have pivoted to online and virtual learning environments.
In response to the lower-than-expected earnings, Scholastic Corporation has implemented cost containment measures, such as reducing employee expenses and capital spending. Despite the current challenges, Scholastic Corporation remains committed to their core mission of helping children become effective learners and lifelong readers. They are confident that the steps they are taking now will position them for a stronger future as the pandemic subsides.
Earnings
Recently, SCHOLASTIC CORPORATION released its earning report for FY2024 Q1 ending August 31 2021, and unfortunately, the report revealed lower-than-expected earnings per share (EPS) and total revenue. The total revenue earned was 259.8M USD, with a 24.4M USD net income loss. Compared to the same period in the previous year, there was a 1.2% decrease in total revenue.
Further, over the last 3 years, SCHOLASTIC CORPORATION’s total revenue decreased from 259.8M USD to 228.5M USD. This is slightly concerning as it suggests that the company’s performance has been decreasing steadily over the past few years.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Scholastic Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 1.67k | 57.5 | 3.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Scholastic Corporation. More…
| Operations | Investing | Financing |
| 171.1 | -105.2 | -180.4 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Scholastic Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.77k | 717.7 | 33.34 |
Key Ratios Snapshot
Some of the financial key ratios for Scholastic Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 4.3% | 107.6% | 4.4% |
| FCF Margin | ROE | ROA |
| 6.4% | 4.1% | 2.6% |
Market Price
Despite the weak results, SCHOLASTIC CORPORATION stock opened at $40.7 and closed at $41.5, up by 3.6% from the prior closing price of $40.0. Analysts have attributed the positive market reaction to the company’s encouragement that it will bounce back after a lackluster year. Live Quote…
Analysis
At GoodWhale, we thoroughly analyze SCHOLASTIC CORPORATION‘s financials and weigh all factors. According to our Star Chart, SCHOLASTIC CORPORATION is strong in asset and dividend, medium in profitability and weak in growth. The company has a high health score of 8/10, which shows that it is capable to safely ride out any crisis without the risk of bankruptcy. Based on the analysis, we can conclude that SCHOLASTIC CORPORATION is classified as ‘rhino’, a type of company that has achieved moderate revenue or earnings growth. Investors who are looking for steady returns over the long term may be interested in this type of company, as it is likely to achieve consistent performance. Investors looking for higher returns over the short term may prefer to invest in a company from a different category. More…
Peers
The company was founded in 1920 and is headquartered in New York City. Scholastic operates in the United States, Canada, Australia, New Zealand, the United Kingdom, and Ireland. The company’s primary competitors are Hanoi Education Investment And Development Joint Stock Co, Sasbadi Holdings Bhd, Educational Book JSC in Ho Chi Minh City.
– Hanoi Education Investment And Development Joint Stock Co ($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 is a well-known provider of educational materials and services to schools, teachers and children. Recently, the company reported its non-GAAP earnings per share at $2.45, missing analysts’ estimates by $0.20. Revenue of $562.6M also missed expectations by $62.63M. Despite the miss, investors responded positively to the news as the stock price moved up the same day. In order to assess the long-term investing outlook for Scholastic Corporation, investors should consider analyzing key financials such as revenue growth, margins, cash flow, and balance sheet. Furthermore, it is important to look at competitive advantages and potential opportunities for the company in the market.
Additionally, analyzing management’s track record can be helpful in gauging the potential for Scholastic Corporation.
Related Posts
Recent Posts
Investing Everyone Can Do.
Investing shouldn’t be exclusive to a select few. We believe everyone should have the opportunity to grow their wealth. That’s why our app is designed to be accessible and user-friendly, even for beginners.
