Scholastic shares plunge 14% as Q2 earnings, income fall in need of estimates

NEW YORK – Scholastic (NASDAQ:SCHL) Company (NASDAQ:SCHL) shares fell sharply, by 14%, after the youngsters’s ebook writer reported fiscal second quarter outcomes that missed analyst expectations, with income declining YoY amid softer publishing gross sales.

The corporate posted adjusted earnings per share of $1.82 for the quarter ended November 30, effectively beneath the $2.93 analysts had been anticipating. Income fell 3% YoY to $544.6 million, lacking estimates of $587.06 million.

Scholastic attributed the income decline primarily to timing-related elements in its Youngsters’s Ebook Publishing and Distribution phase, together with the present yr’s publishing plan and fall honest bookings in comparison with the prior yr. Ebook Festivals income dropped 5% YoY to $231 million resulting from fewer festivals held within the quarter.

“As we outlined when asserting our first quarter earnings, second quarter outcomes had been decrease than a yr in the past, primarily reflecting the timing of this yr’s publishing releases,” stated Peter Warwick, President and CEO.

The corporate reaffirmed its fiscal 2025 steerage, expressing confidence in its capacity to navigate market circumstances and obtain its full-year plan. Scholastic additionally introduced it has upsized its revolving credit score facility to $400 million.

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