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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Zoom Avoids Doom (For Now)

Pandemic-era darling Zoom Video Communications reported results tonight after hitting all-time lows late last month. And for once, it didn’t disappoint. ๐Ÿ‘

The company’s adjusted earnings per share of $1.29 beat expectations of $1.10. Analysts quickly pointed out that the beat was primarily driven by the company cutting sales/marketing and general/administrative expenses. But for Zoom, a win is a win…

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Fisker’s Fresh Lows

Electric vehicle startup Fisker had another rough day after pushing its third-quarter earnings release to Monday, Nov. 13. ๐Ÿ—“๏ธ

The company said, “The timing of the appointment of a new chief accounting officer effective Nov. 6, 2023, and the departure of the former chief accounting officer effective Oct. 27, 2023, has delayed the completion of the financial statements and related disclosures.” The unexpected delay caused more anxiety among already concerned investors, sending shares down 8%. ๐Ÿ˜ฌ

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Checking In On Cannabis

While it’s been a rough ride for space company investors, those in the cannabis space know a thing or two about pain. And that pain continued today despite decent results from two of its most well-known players. ๐Ÿค•

Aurora Cannabis reported second-quarter adjusted EBITDA of C$3.4 million on revenues of $63.4 million. Revenue rose 30.3% YoY, primarily due to its growth in its global medical cannabis business and plant propagation. Its net loss from operations narrowed to nearly breakeven, up from a C$45.5 million loss last year. $ACB shares jumped 12% on the news.

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Walmart Rolls Back Its Share Price

Yesterday, we heard from Target, which soared after getting its earnings back on track despite declining sales. Today, we heard from Walmart, which plunged after growing sales and beating on earnings. Let’s talk about why that happened. ๐Ÿ‘‡

Today’s earnings in Walmart contrasted Target’s, but the underlying cautious tone about the U.S. consumer remained. The big-box retailer reported adjusted earnings per share of $1.53 on $168.80 in revenues, topping the $1.52 and $159.72 billion expected by analysts.ย 

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