NASDAQ$SCHL

Scholastic Corporation · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Scholastic's Q2 2024 financial results were released, showing a decrease in revenue but an increase in operating income and diluted earnings per share.

Scholastic reported a decrease in revenue by 4% to $562.6 million, primarily due to reduced promotional spending and the elimination of unprofitable orders in Book Clubs. However, operating income increased by 1% to $101.3 million, and diluted earnings per share increased by 16% to $2.45. The company returned over $58 million to shareholders through share buybacks and dividends.

  • Revenues decreased by 4% to $562.6 million due to reduced promotional spending and unprofitable orders in Book Clubs.
  • Operating income increased by 1% to $101.3 million, driven by lower promotional spending and improvements in inventory and freight costs.
  • Diluted earnings per share increased by 16% to $2.45.
  • The company updated its fiscal year 2024 guidance, now expecting Adjusted EBITDA of $165 million to $175 million and revenue to be approximately level with or slightly below the prior year.

Headline financials

Total Revenue

$563M

Previous: $588M-4.3%
EPS (adj)

$2.45

Previous: $2.12+15.6%
Adjusted EBITDA

$124M

Previous: $122M+1.4%
Capital Expenditures

-$29.1M

Previous: -$24.1M-20.7%
Free Cash Flow

$47.8M

Previous: $51.2M-6.6%
Net Income

$76.9M

Previous: $75.3M+2.1%
Operating Income

$101M

Previous: $100M+1.2%
Gross Profit

$329M

Previous: $328M+0.3%
Cash & Equivalents

$150M

Previous: $261M-42.7%
Total Assets

$1.83B

Previous: $2.03B-9.9%
Stock-Based Comp

$4.1M

Previous: $4.2M-2.4%

Revenue & EPS history

Scholastic · Revenue · Quarterly

$563M

Q2 2024-4.3%vs Q2 2023
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 updated its guidance for fiscal year 2024 and now expects Adjusted EBITDA of $165 million to $175 million. Full-year revenue is now expected to be approximately level with or slightly below the prior year.

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 Q2 2024

Historical avgQ2 2024

-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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