NASDAQ$SCHL

Scholastic Corporation · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Reported financial results for the first quarter of fiscal year 2021.

Scholastic reported a decrease in revenue due to COVID-19 impacted delays in school openings but improved operating loss due to cost savings measures. Digital billings were up 15% in the quarter.

  • Successful execution of $100 million cost savings program improved quarterly operating loss and cash used in operating activities.
  • Trade and education businesses performed well and remain positioned for further growth.
  • Digital connections with customers deepened, with digital billings up 15% in the quarter.
  • Cost savings measures should bring permanent improvements to the Company's cost structure and opportunities for substantial gains in profitability as normal sales levels return.

Headline financials

Total Revenue

$215M

Previous: $233M-7.5%
EPS (adj)

-$0.90

Previous: -$1.59+43.4%
Capital Expenditures

-$16M

Previous: -$13.5M-18.5%
Free Cash Flow

-$55.8M

Previous: -$72M+22.5%
Net Income

-$39.8M

Previous: -$58.5M+32.0%
Operating Income

-$57M

Previous: -$87.4M+34.8%
Gross Profit

$92M

Previous: $95.5M-3.7%
Cash & Equivalents

$356M

Previous: $199M+78.3%
Total Assets

$2.06B

Previous: $1.94B+5.7%
Stock-Based Comp

$600K

Previous: $1.5M-60.0%

Revenue & EPS history

Scholastic · Revenue · Quarterly

$215M

Q1 2021-7.5%vs Q1 2020
Beat estimate in 6 of 16 quarters(38%)
ActualEstimate

Revenue by segment

Scholastic · $328M total across 4 segments · Q3 2026

  • Children's Book Publishing and Distribution
    $198M
  • International
    $58.7M
  • Education Solutions
    $56.1M
  • Entertainment
    $16M

Forward guidance

The company expects a significant decline in revenues in the Children's Book Publishing and Distribution segment in the second quarter due to delays in club orders and fair bookings but believes that business conditions should improve in the second half of its fiscal year, but is not providing a financial outlook for fiscal year 2021.

Tailwinds

  • Company has substantially completed work on lowering its cost base by $100 million.
  • A significant portion of these cost savings, as well as new measures being taken, should continue to favorably impact future period results.
  • The outlook for the Company's trade and education businesses remains positive with a robust frontlist of bestselling series and authors scheduled to release over the remainder of the fiscal year.
  • Scholastic's digital education programs and digital-only magazines gaining momentum as schools look to learning solutions which can be used at school and at home.
  • Expect increasing demand for the Company's slate of flexible new services, such as our virtual and shippable fair options and home delivery of club and fair orders, as well as our safe and easy in-person fairs.

Headwinds

  • Delays in club orders and fair bookings will likely lead to a significant decline in revenues in the Company's Children's Book Publishing and Distribution segment in the second quarter.
  • Given the variability in school schedules, as well as the possibility of new COVID outbreaks and their potential impact on schools, Scholastic is not providing a financial outlook for fiscal year 2021.
  • Lower sales in the Company's direct sales business in Asia.
  • School closings in Canada, Australia and the U.K.
  • COVID-19 related measures taken by governmental authorities or suppliers or customers which may curtail or otherwise adversely affect certain of the Company's business operations

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

-1.8%

Avg return

Earnings day

-2.4%

Avg return

5 days after

-0.3%

Avg return

30 days after

43%

29 / 68 earnings

Positive

+14.6%

Q4 2022

Best reaction

-24.1%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+8.7%+14.2%+16.2%
Q2 2026-6.5%+1.0%+19.6%
Q1 2026-12.2%-4.5%+3.2%
Q4 2025-0.7%+1.3%+22.6%
Q3 2025+12.9%+0.3%-13.3%
Q2 2025-19.6%-12.9%-18.9%
Q1 2025+8.0%+0.9%-17.2%
Q4 2024-22.8%-17.8%-18.6%
Q3 2024+2.7%+2.5%-4.9%
Q2 2024-8.4%-7.1%-5.7%
Q1 2024-14.2%-5.1%-5.8%
Q4 2023+9.6%+5.6%+7.3%
Q3 2023-24.1%-23.9%-14.1%
Q2 2023+1.5%+4.6%+17.4%
Q1 2023-20.0%-28.8%-19.5%
Q4 2022+14.6%+23.4%+25.4%
Q3 2022-11.6%-10.8%-6.9%
Q2 2022+2.4%+4.8%+15.7%
Q1 2022-1.3%+2.5%+4.9%
Q4 2021-4.4%-3.3%-2.7%
Q3 2021+3.0%-6.9%+5.2%
Q2 2021-8.5%-13.1%-1.7%
Q1 2021+2.4%+3.2%+9.7%
Q4 2020-10.3%-13.0%-20.7%
Q3 2020-1.8%+13.2%+29.3%
Q2 2020+6.1%-0.2%-6.6%
Q1 2020+2.4%-3.4%-2.7%
Q4 2019+0.5%+2.5%-0.9%
Q3 2019-4.2%-0.4%+0.8%
Q2 2019-11.2%-11.4%-1.5%
Q1 2019+8.9%+5.7%-4.0%
Q4 2018-7.9%-11.8%-12.0%
Q3 2018+3.1%+5.8%+13.9%
Q2 2018-4.5%-4.0%-7.4%
Q1 2018-5.9%-5.9%-2.9%
Q4 2017-5.3%-6.3%-13.2%
Q3 2017-4.9%-6.7%-2.5%
Q2 2017+5.9%+6.0%+0.5%
Q1 2017+0.2%-0.5%-0.3%
Q4 2016+2.5%+3.0%-0.4%
Q3 2016+4.1%
Q2 2016-8.4%
Q1 2016-3.3%
Q4 2015+1.2%
Q3 2015+6.0%
Q2 2015-1.5%
Q1 2015-6.3%
Q4 2014+6.8%
Q3 2014+1.7%
Q2 2014+9.8%
Q1 2014-3.3%
Q4 2013-8.0%
Q3 2013-15.4%
Q2 2013-2.2%
Q1 2013+1.9%
Q2 2012+6.4%
Q4 2012+6.4%
Q3 2012-0.9%
Q1 2012-2.7%
Q4 2011-2.6%
Q4 2009-2.6%
Q3 2011-0.1%
Q3 2010-0.1%
Q2 2010+4.1%
Q2 2011+4.1%
Q4 2010-0.1%
Q1 2010-0.1%
Q1 2011-0.1%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro