NASDAQ$SCHL

Scholastic Corporation · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported a 24% increase in third quarter revenues driven by strong demand for products, particularly from book fairs and education solutions.

Scholastic Corporation reported a 24% increase in third-quarter revenues, driven by higher-than-expected revenue per fair from book fairs and strong demand for educational products. The company anticipates a strong fourth quarter with the spring book fair season and the peak selling season for Education Solutions.

  • Third quarter revenues increased by 24% due to strong demand.
  • Book fairs revenue increased due to higher revenue per fair.
  • Education Solutions revenues increased due to core instructional products and Scholastic Magazines+.
  • The company expects a strong fourth quarter, driven by education solutions and book fairs.

Headline financials

Total Revenue

$345M

Previous: $278M+24.1%
EPS (adj)

-$0.38

Previous: -$0.14-171.4%
Capital Expenditures

-$28M

Previous: -$37.1M+24.5%
Free Cash Flow

-$43.3M

Previous: -$51M+15.1%
Net Income

-$15.3M

Previous: -$13.9M-10.1%
Operating Income

-$19.5M

Previous: -$24.2M+19.4%
Gross Profit

$175M

Previous: $132M+33.0%
Cash & Equivalents

$309M

Previous: $353M-12.5%
Total Assets

$1.94B

Previous: $2.04B-4.6%
Stock-Based Comp

$1.6M

Previous: $1.4M+14.3%

Revenue & EPS history

Scholastic · Revenue · Quarterly

$345M

Q3 2022+24.1%vs Q3 2021
Beat estimate in 4 of 11 quarters(36%)
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 anticipates a strong fourth quarter driven by its comprehensive education offerings and revenues related to summer reading initiatives.

Tailwinds

  • Number of in-person book fairs to continue to trend at 70% of pre-pandemic levels with improved revenue per fair.
  • Continued strong customer re-engagement in the book clubs channel.
  • Benefit of new releases in the trade channel.
  • Robust pipeline for the Company’s media group.
  • Strong fourth quarter driven by comprehensive education offerings.

Headwinds

  • Cost pressures for paper, printing, and freight will continue in the fourth quarter.
  • Higher labor costs due to continuing inflationary pressures.
  • Rising fuel costs will impact the business, primarily related to the delivery of book fairs.
  • COVID-related issues and recently adopted restrictive regulations in China will result in continued softness in Asia.
  • Balancing fulfillment capacity with customer delivery date expectations may shift orders to the first quarter of the next fiscal 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 Q3 2022

Historical avgQ3 2022

-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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