Educational publishing and media company Scholastic (NASDAQ: SCHL) will be announcing earnings results today afternoon. Here’s what you need to know.
Scholastic missed analysts’ revenue expectations by 1.7% last quarter, reporting revenues of $544.6 million, down 3.2% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EPS estimates and a slight miss of analysts’ EBITDA estimates.
Is Scholastic a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Scholastic’s revenue to grow 7.4% year on year to $347.7 million, improving from its flat revenue in the same quarter last year. Adjusted loss is expected to come in at -$0.78 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Scholastic has missed Wall Street’s revenue estimates six times over the last two years.
With Scholastic being the first among its peers to report earnings this season, we don’t have anywhere else to look to get a hint at how this quarter will unravel for consumer discretionary stocks. However, the whole sector has been hit hard over the last month as stocks in Scholastic’s peer group are down 12.2% on average. Scholastic is down 4.9% during the same time and is heading into earnings with an average analyst price target of $40 (compared to the current share price of $19.15).
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