We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Without Harry Potter, Scholastic Earnings & Sales Disappoint in Q1
Read MoreHide Full Article
On Thursday, shares of global publishing house Scholastic Corp. (SCHL - Free Report) are falling, down about 7.2% in late-morning trading after the company reported disappointing financial results for its fiscal 2018 first quarter before the markets opened.
Even though Scholastic anticipated first quarter declines, results reflected a huge year-over-year disparity, but there is a reason for the difference. Last year, the best-selling book in North America, Harry Potter and the Cursed Child: Parts I and II, helped push Scholastic’s revenues higher after it was released in June.
The publishing company didn’t have a monster hit this year to help boost sales the same way, which came in at $189.2 million and declined 33%. Scholastic’s Children’s Book Publishing and Distribution segment revenue fell 52% to $66.8 million (a decrease in sales in book clubs and book fairs contributed as well), while its Education and International segment revenues fell 18% and 14%, respectively.
CEO Richard Robinson pointed to many new bestselling titles like Dog Man: A Tale of Two Kitties, but revenues from these books just couldn’t compare to Cursed Child.
Scholastic reported a quarterly loss of $1.81 per share compared to a loss of $1.15 per share in the year-ago period. The company noted that it usually records a loss in its fiscal first quarter since most U.S. schools are not in session.
Looking ahead, Scholastic reaffirmed its fiscal 2018 outlook. The publishing house expects earnings in the range of $1.20 to $1.30 per share, with revenues between $1.65 billion and $1.70 billion. Zacks currently expects earnings of $1.24 per share and revenues of $1.68 billon.
“We expect to continue our success in trade this year as we announce new Harry Potter publishing leading up to the 20th anniversary of Harry Potter in the U.S. in 2018,” said Mr. Robinson.
“In our school channels, we are starting our important back-to-school season with a well-defined book fair strategy, including new merchandising to highlight age-appropriate groupings of books, and in book clubs, a return to the multi-grade offers which teachers have been asking for. In addition, we are expanding our curriculum content in Education, backed up by a strengthened field sales operation, to support our continued growth in the core literacy curriculum market,” he continued.
Scholastic is currently a #3 (Hold) on the Zacks Rank, with a VGM Score of ‘A.’ Shares of the company are down roughly 18.6% year-to-date.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Without Harry Potter, Scholastic Earnings & Sales Disappoint in Q1
On Thursday, shares of global publishing house Scholastic Corp. (SCHL - Free Report) are falling, down about 7.2% in late-morning trading after the company reported disappointing financial results for its fiscal 2018 first quarter before the markets opened.
Even though Scholastic anticipated first quarter declines, results reflected a huge year-over-year disparity, but there is a reason for the difference. Last year, the best-selling book in North America, Harry Potter and the Cursed Child: Parts I and II, helped push Scholastic’s revenues higher after it was released in June.
The publishing company didn’t have a monster hit this year to help boost sales the same way, which came in at $189.2 million and declined 33%. Scholastic’s Children’s Book Publishing and Distribution segment revenue fell 52% to $66.8 million (a decrease in sales in book clubs and book fairs contributed as well), while its Education and International segment revenues fell 18% and 14%, respectively.
CEO Richard Robinson pointed to many new bestselling titles like Dog Man: A Tale of Two Kitties, but revenues from these books just couldn’t compare to Cursed Child.
Scholastic reported a quarterly loss of $1.81 per share compared to a loss of $1.15 per share in the year-ago period. The company noted that it usually records a loss in its fiscal first quarter since most U.S. schools are not in session.
Looking ahead, Scholastic reaffirmed its fiscal 2018 outlook. The publishing house expects earnings in the range of $1.20 to $1.30 per share, with revenues between $1.65 billion and $1.70 billion. Zacks currently expects earnings of $1.24 per share and revenues of $1.68 billon.
“We expect to continue our success in trade this year as we announce new Harry Potter publishing leading up to the 20th anniversary of Harry Potter in the U.S. in 2018,” said Mr. Robinson.
“In our school channels, we are starting our important back-to-school season with a well-defined book fair strategy, including new merchandising to highlight age-appropriate groupings of books, and in book clubs, a return to the multi-grade offers which teachers have been asking for. In addition, we are expanding our curriculum content in Education, backed up by a strengthened field sales operation, to support our continued growth in the core literacy curriculum market,” he continued.
Scholastic is currently a #3 (Hold) on the Zacks Rank, with a VGM Score of ‘A.’ Shares of the company are down roughly 18.6% year-to-date.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think. See This Ticker Free >>