Scholastic Shares Fall On Worse-Than-Expected Q2 Results: Details

Scholastic Corp. SCHL reported its second-quarter results after Thursday's closing bell. Here's a look at the details of the report. 

The Details: Scholastic reported quarterly earnings of $1.82 per share, which missed the analyst consensus estimate of $2.30. Quarterly revenue came in at $544.6 million, which missed the analyst consensus estimate of $553.97 million and was a decrease from sales of $562.6 million from the same period last year.

• Children’s Book Publishing and Distribution segment revenues decreased 6% to $367 million.
• Education Solutions revenues decreased 12% to $71.2 million, related to lower spending on supplemental curriculum products, as school districts adopt and implement new core programs.
• Entertainment segment revenues were $16.8 million, primarily reflecting the addition of 9 Story Media Group revenues.

“Scholastic’s proprietary school-based channels continued to deliver the joy and excitement of books and reading this fall, and our publishing and entertainment divisions moved ahead with exciting plans for this fiscal year and next. As we outlined when announcing our first quarter earnings, second quarter results were lower than a year ago, primarily reflecting the timing of this year’s publishing releases,” said Peter Warwick, CEO of Scholastic.

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Outlook: The company reaffirmed its fiscal 2025 guidance.

SCHL Price Action: According to Benzinga Pro, Scholastic shares are down 10.55% after-hours at $22.22 at the time of publication Thursday. 

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Image: Scholastic Corporation