Scholastic Corp (SCHL) Ttps Q3 EPS by 30c, cannot affirm its current guidance ranges

Scholastic Corp (NASDAQ: SCHL) reported Q3 EPS of ($0.34), $0.30 better than the analyst estimate of ($0.64). Revenue for the quarter came in at $373.3 million versus the consensus estimate of $342.1 million.

Fiscal 2020 View:

Through the nine months ended February 29, 2020, the Company remained on course to achieve its operating goals for 2020 fiscal year revenues and Adjusted EBITDA (as defined in the accompanying tables). The Company's long-term capital investment plan also remained on target, although project spending is now being deferred to safeguard the Company's cash position against lower business volumes. Despite this solid performance to-date, the Company has advised that it cannot affirm its current guidance ranges as a direct result of mandated school closings in North America, the Company's largest market. The Company has already taken actions to help mitigate any adverse impact to profitability and cash flow in its fiscal fourth quarter, including: (1) a freeze on all spending not directly tied to short-term revenue; (2) reduced inventory purchasing; (3) a reduction in labor costs; and (4) temporary closures of warehousing and distribution centers in highly impacted regions, while working proactively with schools to support them through this period of disruption.

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

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