Scholastic Corp Misses Q2 EPS Estimates

Scholastic Corp SCHL reported financial results Thursday for the Company's fiscal 2015 second quarter ended November 30, 2014.

Revenue in the second quarter was $665.6 million, above estimates of $636.40 and the $623.2 million reported a year ago, an increase of 7 percent. 

The Company reported second quarter earnings per diluted share of $2.05, versus $1.80 in the prior year period. 

Excluding one-time items, second quarter earnings per diluted share were $2.17, below estimates of $2.22 and above the $2.15 reported in the prior year period (the prior year period included one-time expenses of $0.35 per diluted share). 

"Scholastic had a solid quarter of revenue growth with significant gains in our Club and Fair school distribution channels, reflecting the success of the new marketing strategies implemented by Clubs in the second half of last year, as well as in classroom books.  With Clubs leading the way on a 33 percent revenue gain, Children's Book Publishing and Distribution saw 14 percent sales growth in the quarter,” commented Richard Robinson, Chairman, President and Chief Executive Officer. 

Scholastic affirmed its fiscal 2015 outlook for total revenue of approximately $1.9 billion and earnings per diluted share from continuing operations in the range of $1.80 to $2.00, before the impact of one-time items associated with cost reduction programs or non-cash, non-operating items.  The Company continues to expect free cash flow in the range of $65 to $85 million.

Scholastic Corp closed at $34.91 Wednesday, up 1.51 percent.