Scholastic Corporation (NASDAQ:SCHL) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Scholastic Corporation Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased to $-0.90 in the quarter versus EPS of $-1.02 in the year-earlier quarter.
Revenue: Decreased 5.89% to $276.3 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Scholastic Corporation reported adjusted EPS loss of $0.90 per share. By that measure, the company missed the mean analyst estimate of $-0.68. It missed the average revenue estimate of $299.7 million.
Quoting Management: “We are off to a great start this year, as schools continue to turn to Scholastic for broad-scale instruction solutions to raise student achievement in the Common Core era. First quarter results were driven by robust, high-margin sales of our new education technology programs and our guided reading programs, as well as the related support services,” said Richard Robinson, Chairman, President and Chief Executive Officer. “Our successful launch of five new products, System 44®Next Generation, MATH 180TM, iReadTM, Common Core Code XTM and READ 180® for iPad, demonstrates our ability to build on a decade of success with READ 180 to offer more products across grade levels and subject areas to our installed customer base and to expand our reach into more schools. At the same time, we continue to see significant demand for our professional development and school improvement services. Given the timing of our recent product releases, we expect to see increasing sales of our instructional programs and services over the course of the year.”
Key Stats (on next page)…