Scholastic Shares Fall Alongside Revenues, Earnings And Guidance

Scholastic Corp SCHL shares are falling in Thursday's after-hours session after the children's publishing, and media company reported financial results that were down on a year-over-year basis and lowered its outlook. 

• Q3 Revenue: $324.9 million, down from $344.5 million year-over-year
• Q3 EPS: Loss of 57 cents, down from a loss of 38 cents year-over-year

"Scholastic navigated short-term headwinds in domestic and international markets, which contributed to modest sales declines and higher losses in our seasonally small third quarter," said Peter Warwick, president and CEO of Scholastic.

"With tougher market conditions expected to continue into Q4, we have updated our fiscal 2023 outlook. We have quickly adjusted short-term spending, in line with our revised top-line outlook, and focused on initiatives to improve margins."

Scholastic lowered its full-year 2023 revenue growth expectations from a range of 8%-10% to 4%. The company also lowered its full-year adjusted EBITDA expectations from a range of $195 million to $205 million to a range of $175 million to $185 million.

Scholastic noted that the long-term outlook for children's books remains "as strong as ever." The company's board also authorized an additional $50 million for share repurchases.

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SCHL Price Action: Scholastic shares were down 5.61% in extended trading at $39 at the time of publication, according to Benzinga Pro.

Photo: PublicDomainPictures from Pixabay.