Scholastic Shares Fall 14% After Q2 Earnings Miss Estimates
Scholastic Corporation shares plummeted 14% after the children’s book publisher reported fiscal second quarter results that missed analyst expectations. The company’s revenue declined year-over-year (YoY) amid softer publishing sales.
Adjusted earnings per share came in at $1.82, significantly below the estimated $2.93. Revenue fell 3% YoY to $544.6 million, missing estimates of $587.06 million. The revenue decline was primarily attributed to timing-related factors in the Children’s Book Publishing and Distribution segment, including the current year’s publishing plan and fall fair bookings compared to the prior year.
Book Fairs revenue dropped 5% YoY to $231 million due to fewer fairs held in the quarter. However, the company reaffirmed its fiscal 2025 guidance, expressing confidence in its ability to navigate market conditions and achieve its full-year plan.
Scholastic also announced it has upsized its revolving credit facility to $400 million. The company’s CEO, Peter Warwick, stated that the second quarter results were lower than a year ago, primarily reflecting the timing of this year’s publishing releases.
