Scholastic Shares Sink as FY13 Outlook Slashed

Scholastic SCHL announced a reduced FY13 outlook late Tuesday evening. Shares have opened down nearly 20% Wednesday morning. The company's FY sales guidance was lowered from $1.9-2B to $1.8-1.9B vs $1.94B analyst estimate. Continuing operations guidance for the FY reduced from $2.20-2.40 to $1.40-1.60 vs $2.27 estimate. Scholastic is expecting FY13 free cash flow of $100-200M.