NASDAQ$SCHL

Scholastic Corporation · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Scholastic's Q4 2021 results showed significant improvement, with revenues up by 41% and operating income rising by $55.9 million, driven by improved market conditions and cost-saving initiatives.

Scholastic Corporation reported a strong fourth quarter for fiscal year 2021, with a 41% increase in revenues and a significant improvement in operating income, driven by improvements across all operating segments and the benefits of cost-saving initiatives. The company's positive free cash flow generation and improved operating margins led to year-over-year growth in adjusted EBITDA, despite a decline in full-year revenues.

  • Consolidated revenues increased by 41% to $401.4 million in the fourth quarter, driven by improvements in all three operating segments.
  • Operating income rose by $55.9 million to $9.7 million, attributable to higher sales volume and cost savings initiatives.
  • The company had operating income of $41.6 million, excluding one-time items.
  • Earnings per diluted share was $0.22, with $0.90 excluding one-time items.

Headline financials

Total Revenue

$401M

Previous: $284M+41.3%
EPS (adj)

$0.90

Previous: -$0.23+491.3%
Free Cash Flow

$20.5M

No prior period
Net Income

$7.6M

Previous: -$13M+158.5%
Operating Income

$9.7M

Previous: -$46.2M+121.0%
Gross Profit

$203M

Previous: $117M+73.3%
Cash & Equivalents

$367M

Previous: $394M-6.9%
Total Assets

$1.18B

Previous: $1.18B+0.1%
Stock-Based Comp

$1.5M

Previous: $700K+114.3%

Revenue & EPS history

Scholastic · Revenue · Quarterly

$401M

Q4 2021+41.3%vs Q4 2020
Beat estimate in 5 of 14 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

Scholastic anticipates significant growth in fiscal 2022 revenues and improved adjusted EBITDA due to revenue gains across all operating segments and increased margin leverage from cost mitigation efforts.

Tailwinds

  • Strengthening trends in businesses and customer end markets as students return to classrooms.
  • Educators seeking dependable ways to accelerate student achievement.
  • Stores welcoming shoppers without restrictions.
  • Book fair bookings and confirmations by schools at a slightly higher rate than preliminary expectations.
  • Incremental growth in many channels as it builds on the greater involvement of parents globally in purchasing home learning for their children.

Headwinds

  • Uncertainty still remains.
  • Higher compensation costs.
  • Discontinuation of certain COVID-related government subsidies in the new fiscal year.
  • Certain fiscal 2021 cost savings that were tied to lower sales volumes will not be repeated in fiscal 2022 as customer demand rises to pre-pandemic levels.
  • Rebuilding the book fairs business will take time given changes in customer engagement and capacity constraints post-pandemic.

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 Q4 2021

Historical avgQ4 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%

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