Scholastic Corporation shareholders received another chapter of the company’s book. And unfortunately, they didn’t like what they read. ☹️
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. 📊
The timing of state-sponsored program revenue impacted its U.S. segments, while weakness in Canada and Australia’s retail book market pressured international results.
Looking ahead, the company expects 3%-5% revenue growth in fiscal 2024, reiterating its adjusted EBITDA guidance of $190 to $200 million. 🔮
$SCHL shares fell 13% back toward the middle of their long-term trading range as investors digested the lackluster news and guidance. 📉