Educational publishing and media company Scholastic (NASDAQ:SCHL) will be reporting results tomorrow after market close. Here’s what to expect.
Scholastic beat analysts’ revenue expectations by 1.6% last quarter, reporting revenues of $237.2 million, up 3.8% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a decent beat of analysts’ EPS estimates.
Is Scholastic a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Scholastic’s revenue to decline 1.5% year on year to $554 million, improving from the 4.3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.30 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Scholastic has missed Wall Street’s revenue estimates five times over the last two years.
With Scholastic being the first among its peers to report earnings this season, we don’t have anywhere else to look to get a hint at how this quarter will unravel for consumer discretionary stocks. However, there has been positive investor sentiment in the segment, with share prices up 4.3% on average over the last month. Scholastic is up 4.1% during the same time and is heading into earnings with an average analyst price target of $44 (compared to the current share price of $25.26).
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