Scholastic reported third quarter revenue of $216.8 million, missing analyst estimates of $224.7 million by 3.5% and marking a 3.9% year-on-year decline, with adjusted EPS of -$3.63 falling short of the expected -$3.42. CEO Peter Warwick attributed the shortfall to the seasonality of the business, with schools out of session and sales particularly light in the Children's Books and Education divisions, though growth in the Entertainment segment partially offset the declines. Adjusted EBITDA came in at -$63.6 million, a 14.2% year-on-year decline at a -29.3% margin, while the operating margin improved to -39.6% from -40.6% a year earlier. Full-year EBITDA guidance stands at $140 million at the midpoint, in line with analyst expectations, and the company carries a market capitalization of $618.2 million. On the earnings call, CFO Haji Glover said higher international fuel costs were anticipated and already factored into full-year forecasts, and CEO Peter Warwick reported strong early-season Book Fairs engagement with expansion into new school formats driven by both returning and first-time schools. Scholastic shares traded at $33.24 following the report, down from $34.83 just before the earnings.
Scholastic CorporationQ3 revenue of $216.8M missed estimates by 3.5% and adjusted EPS of -$3.63 fell short of the expected -$3.42.
