NASDAQ$SCHL

Scholastic Corporation · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Scholastic reported first quarter results, reflecting strategic investments in Education Solutions and a return to more normal seasonality.

Scholastic's first quarter results were on plan, with revenues increasing slightly but operating loss increasing significantly due to lower sales in Education Solutions and higher costs. The company affirmed its full-year guidance for fiscal year 2023.

  • Revenues increased 1.2% to $262.9 million, driven by higher Book Fairs revenues but offset by lower revenues in Education Solutions.
  • Operating loss increased $26.1 million to $58.1 million, primarily due to lower sales in Education Solutions and increased freight costs.
  • The company strategically invested in long-term go-to-market capabilities and moved to acquire Learning OvationsTM.
  • Scholastic reaffirmed its guidance for fiscal year 2023, expecting revenues to increase 8% to 10% and Adjusted EBITDA of $195 million to $205 million.

Headline financials

Total Revenue

$263M

Previous: $260M+1.2%
EPS (adj)

-$1.33

Previous: -$0.79-68.4%
Adjusted EBITDA

-$35.6M

No prior period
Capital Expenditures

-$11.4M

Previous: -$10.2M-11.8%
Free Cash Flow

-$56.9M

Previous: -$34.4M-65.4%
Net Income

-$45.5M

Previous: -$24.2M-88.0%
Operating Income

-$58.1M

Previous: -$32M-81.6%
Gross Profit

$118M

Previous: $127M-6.4%
Cash & Equivalents

$240M

Previous: $309M-22.3%
Total Assets

$1.93B

Previous: $1.93B+0.3%
Stock-Based Comp

$1.7M

Previous: $1.5M+13.3%

Revenue & EPS history

Scholastic · Revenue · Quarterly

$263M

Q1 2023+1.2%vs Q1 2022
Beat estimate in 3 of 12 quarters(25%)
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 has affirmed its guidance for fiscal year 2023 for revenues to increase 8% to 10% and Adjusted EBITDA of $195 million to $205 million, up from $189 million in fiscal 2022, with the greatest contribution expected in the seasonally important second and fourth fiscal quarters.

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 2023

Historical avgQ1 2023

-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%

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