Gabelli Comments On Scholastic Revenue

According to Gabelli, Scholastic Corp SCHL saw revenues of $394 mm in line with estimate. Gabelli reported that earnings were considerably lower on reduced sales of high-margin technology products and greater service revenues that have lower margins. “Second consecutive guidance reduction is a meaningful disappointment yet Scholastic remains a high-class company, good long-term prospects. The decrease in guidance and increasingly difficult school funding environment are concerns.” Scholastic Corp closed yesterday at $31.24.