The 10-second takeaway
For the quarter ended Feb. 28 (Q3), Scholastic met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly. Non-GAAP loss per share increased. GAAP loss per share grew.
Margins dropped across the board.
Scholastic notched revenue of $380.5 million. The one analyst polled by S&P Capital IQ predicted a top line of $384.2 million on the same basis. GAAP reported sales were 19% lower than the prior-year quarter's $467.0 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 -$0.57. The one earnings estimate compiled by S&P Capital IQ predicted -$0.39 per share. Non-GAAP EPS were -$0.57 for Q3 against -$0.02 per share for the prior-year quarter. GAAP EPS were -$0.63 for Q3 versus -$0.33 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 49.8%, 320 basis points worse than the prior-year quarter. Operating margin was -7.3%, 560 basis points worse than the prior-year quarter. Net margin was -5.3%, 310 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $545.6 million. On the bottom line, the average EPS estimate is $0.92.
Next year's average estimate for revenue is $1.84 billion. The average EPS estimate is $1.52.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 71 members out of 104 rating the stock outperform, and 33 members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 28 give Scholastic a green thumbs-up, and seven give it a red thumbs-down.
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