Scholastic's Q2 Earnings And Outlook Disappoint - Stock Tumbles After-Hours
Portfolio Pulse from Ryan Gustafson
Scholastic Corporation (NASDAQ:SCHL) reported Q2 earnings of $2.45 per share, missing estimates of $2.65, and revenue of $562.60 million, below expectations of $625.22 million. The company's year-over-year revenue declined by 4%, but operating income increased slightly. Scholastic also announced an additional $66 million for share repurchases but lowered its full-year 2024 adjusted EBITDA and revenue forecasts. Shares fell 11.3% in after-hours trading.
December 14, 2023 | 9:46 pm
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Scholastic's Q2 earnings miss and reduced full-year outlook led to an 11.3% drop in after-hours trading. The company also announced a $66 million share repurchase program.
The negative earnings report and lowered future guidance are likely to impact investor sentiment negatively, leading to a potential short-term decline in stock price. The share repurchase program may provide some support to the stock price, but the immediate reaction has been negative.
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IMPORTANCE 90
RELEVANCE 100