Scholastic Stock Hits 4-Year Low After Q2 Double Miss, Facing Retail Criticism
By Stocktwits Inc | First Published Dec 20, 2024, 3:51 PM ISTCEO Peter Warwick said, “Confident in our ability to navigate a dynamic market and achieve our plan for the remainder of the year, we have reaffirmed our guidance for fiscal 2025.”
Scholastic Corp. ($SCHL) shares slumped over 10% in Thursday’s after-hours session after the New York-based publisher and distributor of children’s books announced disappointing fiscal year 2025 second-quarter results.
Scholastic reported second-quarter non-GAAP earnings per share (EPS) of $1.82, down from $2.45 in the year-ago quarter and trailing the consensus estimate of $2.30.
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Revenue fell 3% year-over-year (YoY) to $544.6 million, with the company attributing the drop to timing-related factors in the Children’s Book Publishing and Distribution segment and collections product sales in Education Solutions. The company said the contribution by 9 Story Media Group, which was recorded in the Entertainment segment, helped offset some of the softness.
Analysts, on average, estimated revenue of $553.87 million for the quarter.
President and Chief Executive Officer Peter Warwick said, “Confident in our ability to navigate a dynamic market and achieve our plan for the remainder of the year, we have reaffirmed our guidance for fiscal 2025.”
The company said it is committed to investing in growth opportunities while returning excess cash to shareholders. It added that its strong balance sheet, including a recently upsized $400 million revolving credit facility and robust free cash flow conversion, will help in this pursuit.
On Stocktwits, sentiment toward Scholastic stock flipped from ‘extremely bullish’ a day ago to ‘extremely bullish’ (3/100), matching the lows seen in late September. Message volume increased to ‘extremely high' levels.
After closing Thursday’s regular session up 0.77% at $24.84, the stock plunged 10.63% to $22.20 in the after-hours. The stock will likely open at the lowest level since November 2020 if the after-hours losses carry over into Friday's regular session.
The stock has lost over 32% this year.
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