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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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy