The 10-second takeaway
For the quarter ended Nov. 30 (Q2), Scholastic missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped significantly.
Margins shrank across the board.
Scholastic logged revenue of $616.2 million. The one analyst polled by S&P Capital IQ wanted to see net sales of $632.5 million on the same basis. GAAP reported sales were 10% lower than the prior-year quarter's $685.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.89. The one earnings estimate compiled by S&P Capital IQ forecast $2.05 per share. GAAP EPS of $1.89 for Q2 were 27% lower than the prior-year quarter's $2.60 per share. (The prior-year quarter included -$0.02 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 57.3%, 100 basis points worse than the prior-year quarter. Operating margin was 16.4%, 570 basis points worse than the prior-year quarter. Net margin was 10.0%, 210 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $389.5 million. On the bottom line, the average EPS estimate is -$0.48.
Next year's average estimate for revenue is $1.87 billion. The average EPS estimate is $1.51.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 71 members out of 106 rating the stock outperform, and 35 members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 27 give Scholastic a green thumbs-up, and eight give it a red thumbs-down.
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