Scholastic Slumps On Book Weakness

Scholastic Corporation shareholders received another chapter of the company’s book. And unfortunately, they didn’t like what they read. โ˜น๏ธ

The education and media company’s first-quarter loss widened, and revenues declined due to continued softness in the retail book market. An adjusted loss per share of $2.20 on revenues of $228.5 million missed analyst expectations of a $1.35 per share loss on $268.8 million in revenues.

While the company typically records a loss during its fiscal first quarter, when schools are out of session, the loss grew due to investments in other growth areas. Additionally, its Education Solutions division experienced unfavorable timing and seasonality of sales. ๐Ÿ“Š

The timing of state-sponsored program revenue impacted itsย  U.S. segments, while weakness in Canada and Australia’s retail book market pressured international results.ย 

Looking ahead, the company expects 3%-5% revenue growth in fiscal 2024, reiterating its adjusted EBITDA guidance of $190 to $200 million. ๐Ÿ”ฎ

$SCHL shares fell 13% back toward the middle of their long-term trading range as investors digested the lackluster news and guidance. ๐Ÿ“‰

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Semis Continue To Tower Over Market

Semiconductors continue to dominate the market and thus dominate our headlines. With that said, today we’ve got a fresh stock breaking out and another setting up, so stick with us. ๐Ÿ‘‡

First up is Tower Semiconductor, an Israeli chip manufacturer that reported results today. The company’s revenue fell 13% YoY to $351.7 million during the fourth quarter but topped the $350 million expected by analysts. Its earnings per share were down about 30% YoY to $0.48, but again, better than anticipated. ๐Ÿ”บ

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Disney Snags Two Content Whales

Disney has been struggling with a number of issues ranging from streaming losses to activist investor and political pressures. However, today’s earnings report offered some hope to investors betting on a longer-term turnaround in the stock. ๐Ÿ•Š๏ธ

The media giant reported $1.22 in adjusted earnings per share on $23.55 billion in revenues. Earnings topped estimates, while revenues were just shy.ย 

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JD Joins The China Party

The China trade remains a controversial one, with bulls looking to nail an epic bottom and bears looking for the collapse of the country’s stock market (and economy). However, despite all the crazy headlines about economic data, regulators banning short selling, and a whole lot more, some stocks are trying to stabilize. ๐Ÿ“ฐ

Today’s example is eCommerce giant JD.com, which reported an earnings and revenue beat after a long string of disappointments. While growth remains well off its pandemic-era highs, investors are happy to see that the business is at least stabilizing and being forecasted properly by management.

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Cyber Stocks Get Clocked

Palo Alto Networks is getting pounded by sellers after hours, dragging the rest of the sector down with it. Let’s see what happened. ๐Ÿ‘‡

The cybersecurity giant reported adjusted earnings per share of $1.46 on revenues of $1.98 billion. Unfortunately, that’s where the good news ended.

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