NASDAQ$SCHL

Scholastic Corporation · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Scholastic's Q3 2024 results reflected level revenues and increased operating loss, with trade sales growth offset by declines in U.S. Book Clubs and higher spending on growth initiatives.

Scholastic reported approximately level revenues of $323.7 million, a slight decrease from the prior year. The operating loss increased to $34.9 million, impacted by higher spending on growth initiatives. The company returned over $60 million to shareholders through repurchases and dividends and affirmed its fiscal 2024 guidance.

  • Consolidated trade sales increased by 7%, driven by strong performance in the U.S., Canada, and the UK.
  • Scholastic announced an agreement to invest in 9 Story Media Group, expanding its content creation strategy.
  • The company experienced modest revenue declines in School Reading Events and Education divisions due to a complex environment in U.S. schools.
  • Over $60 million was returned to shareholders through share repurchases and dividends during the quarter.

Headline financials

Total Revenue

$324M

Previous: $325M-0.4%
EPS

-$0.91

Previous: -$0.57-59.6%
Adjusted EBITDA

-$7.2M

No prior period
Capital Expenditures

-$43.8M

Previous: -$36.8M-19.0%
Free Cash Flow

-$70.3M

Previous: -$56M-25.5%
Net Income

-$26.5M

Previous: -$19.2M-38.0%
Operating Income

-$34.9M

Previous: -$27.7M-26.0%
Gross Profit

$175M

Previous: $164M+6.8%
Cash & Equivalents

$110M

Previous: $199M-44.5%
Total Assets

$1.72B

Previous: $1.88B-8.6%
Stock-Based Comp

$2.3M

Previous: $2.3M+0.0%

Revenue & EPS history

Scholastic · Revenue · Quarterly

$324M

Q3 2024-0.4%vs Q3 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

Scholastic affirmed its revised fiscal 2024 guidance, expecting strong performance in the largest and most profitable quarter.

Tailwinds

  • Strong expectations for the largest and most profitable quarter of the year
  • Continued successes in children’s book publishing and entertainment
  • Multiple new releases expanding Scholastic’s presence on bestseller lists
  • Greenlighting of a second season of the Goosebumps® TV series
  • Strategic investment in 9 Story Media Group to broaden content creation

Headwinds

  • Modest revenue declines in School Reading Events and Education divisions
  • Impact of the complex environment in U.S. schools
  • Lower U.S. Book Clubs revenues due to strategic repositioning
  • Increased operating loss due to higher spending on growth initiatives
  • Shift in the overall seasonality of the Education Solutions segment sales

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 2024

Historical avgQ3 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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