Scholastic Crushes Estimates

Before you go, we thought you'd like these...
Before you go close icon

Scholastic (NAS: SCHL) reported earnings on Dec. 15. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Nov. 30 (Q2), Scholastic met expectations on revenues and crushed expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded slightly, and earnings per share grew significantly.

Margins improved across the board.

Revenue details
Scholastic chalked up revenue of $685 million. The two analysts polled by S&P Capital IQ foresaw revenue of $685 million.

anImage

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $2.84. The two earnings estimates compiled by S&P Capital IQ predicted $2.33 per share on the same basis. GAAP EPS of $2.60 for Q2 were 22% higher than the prior-year quarter's $2.13 per share.

anImage

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 58.3%, 210 basis points better than the prior-year quarter. Operating margin was 21.3%, 210 basis points better than the prior-year quarter. Net margin was 12.1%, 100 basis points better than the prior-year quarter.

anImage

Source: S&P Capital IQ. Quarterly periods.

Looking ahead
What does the future hold?

Next quarter's average estimate for revenue is $385 million. On the bottom line, the average EPS estimate is -$0.70. (There is one revenue estimate and two EPS estimates.)

For the full year ending 2012, the average estimate for revenue is $1.9 billion. The average EPS estimate is $1.99. (There are three revenue estimates and three EPS estimates.)

Investor sentiment
The stock has a two-star rating at Motley Fool CAPS, with 61 members out of 91 rating the stock outperform, and 30 members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 25 give Scholastic a green thumbs-up, and 10 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Scholastic is outperform, with an average price target of $37.

At the time this article was published

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners