What to expect from Scholastic's Q3 earnings
Scholastic, the educational publishing and media company traded on NASDAQ under the ticker SCHL, will release its third-quarter earnings results on Thursday afternoon. For this quarter, the market anticipates revenue to be flat compared with the same period a year earlier. That would mark an improvement from the 4.9% year-over-year decrease recorded in the same quarter last year.[S1]
In the previous quarter, Scholastic reported revenues of $476.1 million, a 6.3% decline from the prior year, and fell short of analysts' revenue expectations. The company also delivered a softer quarter overall, as its full-year EBITDA guidance missed analysts' expectations by a significant margin. Over the last two years, Scholastic has repeatedly missed Wall Street's revenue estimates.[S1]
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Analysts covering Scholastic have generally reconfirmed their estimates over the past 30 days, indicating they expect the business to remain on its current trajectory heading into the earnings release. As the first company in its peer group to report this season, Scholastic offers no other sector results to hint at how the quarter might unfold for consumer discretionary stocks. Nevertheless, investor sentiment toward the segment has weakened, with Scholastic's peer group down 8.6% on average over the last month, while Scholastic's own stock has fallen 12.6% during the same period.[S1]
