NASDAQ$SCHL
Scholastic Corporation · Q4 2022 earnings
Q4 2022 earnings · · Investor relations
Briefing
Scholastic's Q4 2022 earnings were released, highlighted by a 28% increase in revenue and a significant rise in operating income, driven by strong book fair performance and education solutions sales.
Scholastic reported strong Q4 and full-year results for fiscal 2022, driven by the rebound of in-person book fairs and increased demand for educational products. Revenue increased by 28% compared to the previous year, and operating income saw a substantial gain.
- Revenue increased by 28% year-over-year, reaching $514.4 million.
- Operating income increased by $55.8 million to $65.5 million.
- Children’s Book Publishing and Distribution revenues increased by 42% due to high revenue-per-fair levels and trade revenue growth.
- Education Solutions revenue increased by 26% driven by demand for educational materials and government-funded programs.
Headline financials
Revenue & EPS history
Scholastic · Revenue · Quarterly
$514M
Revenue by segment
Scholastic · $328M total across 4 segments · Q3 2026
- Children's Book Publishing and Distribution$198M—60.2%
- International$58.7M—17.9%
- Education Solutions$56.1M—17.1%
- Entertainment$16M—4.9%
Forward guidance
Scholastic anticipates strong demand for independent reading resources in fiscal 2023 and expects revenue to increase by 8%-10%. The company aims to improve cross-selling and data-driven selling opportunities, while also managing overhead costs and exploring cost-saving opportunities.
Tailwinds
- Overall demand for independent reading resources at home and in school to remain strong.
- Strategically increase fair count, anticipating 85% pre-pandemic levels, while maintaining strong revenue per fair.
- Mitigated labor and system issues in the book clubs channel which will lead to higher operating incomes.
- Increased demand of its educational products supported by continued government-related funding programs.
- Sales of Scholastic Magazines+TM have reached near pre-pandemic levels with distribution of over 125M units of digital and physical product to children throughout the U.S.
Headwinds
- Prudently increase spending to improve cross-selling initiatives and data-driven selling opportunities which will benefit future periods but will impact next fiscal year, decreasing operating income.
- Overhead costs are expected to increase next year due to higher salary related costs as a result of continuing inflationary pressures
- An increase in spending on transformative and digital services as the Company invests in future growth opportunities.
- Business in Australia and New Zealand was adversely affected by the later timing of COVID-related shutdowns when compared to the other markets.
- Revenues in Asia decreased as the Company exited its direct sales business, which is no longer a strategic fit for the Company’s future growth strategy, and China continued to be impacted by restrictive government regulations on after-school tutoring programs as well as pandemic-related shutdowns.
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 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
| Quarter | Report date | Reaction (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% | — | — |
Discussion
Share your read of this quarter. Sign-in carries your eToro identity.
Join the conversation
Sign in with eToro to post your read of this quarter and vote on others'.
Sign in with eToro