Scholastic Corp (SCHL) Reports Q2 EPS of $2.09, Revenues Miss; Offers FY19 EPS Below Consensus, Provides FY19 Revenue Outlook

Scholastic Corp (NASDAQ: SCHL) reported Q2 EPS of $2.09, versus $1.92 reported last year. Revenue for the quarter came in at $604.7 million versus the consensus estimate of $610.5 million.

Richard Robinson, Scholastic Chairman, President and Chief Executive Officer commented: "Our quarter and first half results were solid, keeping us on track to achieve our operating objectives for the fiscal year, although we continue to experience rising product and fulfillment costs similar to other businesses. In the quarter, children's book revenues were up on strong performance in trade, while our school club and fair channels were on par with last year. Scholastic's trade publishing in the U.S. and across the globe once again was at the top of all the bestseller lists. Frontlist titles including Dav Pilkey's Dog Man, Harry Potter 20th Anniversary editions, and Fantastic Beasts™: The Crimes of Grindelwald, the new original screenplay by J. K. Rowling, continue to show the power of great storytellers published by Scholastic. A notable backlist title The Wonky Donkey rose to number one of all books in the U.S. with more than one million books sold in October as Scholastic responded quickly to a read-aloud video on social media that resonated with families around the world.

Mr. Robinson continued, "In education, the second quarter's results were in line with the Company's expectations with momentum in classroom magazines, classroom libraries, and professional learning. We are organizing for the second half launch of our new K-6 curriculum reading program Scholastic Literacy, bringing together our engaging book titles with proven instructional design and professional services. Our technology transformation remains on schedule with the successful introduction of three significant new digital subscription programs and platforms this quarter, as well as the continued implementation of the Company's new ERP platform."

GUIDANCE:

Scholastic Corp sees FY2019 EPS of $1.60-$1.70, versus the consensus of $1.73. Scholastic Corp sees FY2019 revenue of $1.65-1.7 billion, versus the consensus of $1.69 billion.

For earnings history and earnings-related data on Scholastic Corp (SCHL) click here.

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