The 10-second takeaway
For the quarter ended Aug. 31 (Q1), Scholastic missed estimates on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP loss per share grew.
Margins contracted across the board.
Scholastic recorded revenue of $293.6 million. The one analyst polled by S&P Capital IQ looked for a top line of $313.9 million on the same basis. GAAP reported sales were 7.7% lower than the prior-year quarter's $318.0 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 -$1.02. The one earnings estimate compiled by S&P Capital IQ predicted -$1.05 per share. GAAP EPS were -$1.02 for Q1 against -$0.87 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 48.5%, 110 basis points worse than the prior-year quarter. Operating margin was -16.2%, 680 basis points worse than the prior-year quarter. Net margin was -10.9%, 240 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $669.0 million. On the bottom line, the average EPS estimate is $2.62.
Next year's average estimate for revenue is $2.00 billion. The average EPS estimate is $2.24.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 68 members out of 96 rating the stock outperform, and 28 members rating it underperform. Among 31 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 25 give Scholastic a green thumbs-up, and six give it a red thumbs-down.
- Add Scholastic to My Watchlist.