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NEW YORK - Scholastic (NASDAQ:SCHL) Corporation (NASDAQ:SCHL) shares fell sharply, by 14%, after the children's book publisher reported fiscal second quarter results that missed analyst expectations, with revenue declining YoY amid softer publishing sales.
The company posted adjusted earnings per share of $1.82 for the quarter ended November 30, well below the $2.93 analysts were expecting. Revenue fell 3% YoY to $544.6 million, missing estimates of $587.06 million.
Scholastic attributed the revenue decline primarily to timing-related factors in its Children's Book Publishing and Distribution segment, including the current year's publishing plan and fall fair bookings compared to the prior year. Book Fairs revenue dropped 5% YoY to $231 million due to fewer fairs held in the quarter.
"As we outlined when announcing our first quarter earnings, second quarter results were lower than a year ago, primarily reflecting the timing of this year's publishing releases," said Peter Warwick, President and CEO.
The company reaffirmed its fiscal 2025 guidance, expressing confidence in its ability to navigate market conditions and achieve its full-year plan. Scholastic also announced it has upsized its revolving credit facility to $400 million.
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