Scholastic Corp. (SCHL)

Shares of Scholastic Corp. (SCHL) dropped by 11.62% from $41.48 to $36.66 in the trading on Friday, December 15, 2023. The reason why SCHL down today is due to the company's disappointing second-quarter financial results.

• Earnings Miss: Scholastic reported adjusted quarterly earnings of $2.45 per share, which missed the Street's estimate of $2.65. However, this still marked a 16% increase compared to the same period last year.
• Revenue Below Expectations: Quarterly revenue of $562.60 million also fell short of analyst expectations, coming in at $625.22 million. This represented a 4% decline compared to the same period the previous year.
• Profit Improvement: Despite the revenue decrease, the company showed profit improvement, with operating income growing by $1.2 million from $100.1 million compared to the previous year.
• Revised Full-Year Outlook: Scholastic now expects its full-year 2024 adjusted EBITDA to be between $165 million and $175 million, compared to the previous estimate of between $190 million and $200 million. The company also anticipates that full-year revenue will be approximately level with or slightly below the previous year, as opposed to the earlier estimated growth of 3% to 5%.

Shares of Scholastic (SCHL) were down 13.22% on Friday after the company delivered worse-than-expected financial results for the fiscal first quarter ending in August. Revenue of $228.5 million came in well below the consensus analyst estimate of $269 million.

https://www.fool.com/investing/2023/09/22/why-scholastic-stock-dropped-on-friday/

The stock of Scholastic Corporation (SCHL) has seen greatly decrease in the past week after reported quarterly earnings. The company’s sales stood at $324.90 million, a decrease from the previous year’s $344.50 million. It also revised its guidance for fiscal 2023 downward due to economic headwinds. The downward revision of guidance for fiscal 2023 may also have had an impact on investors' perceptions of the company's future prospects. The economic headwinds referred to by the company may include factors such as inflationary pressures, supply chain disruptions, and uncertainty in the global economy.