Scholastic Beats on Both Top and Bottom Lines
Scholastic (NAS: SCHL) reported earnings on March 15. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Feb. 29 (Q3), Scholastic beat expectations on revenue and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP loss per share shrank.
Margins improved across the board.
Scholastic booked revenue of $467.0 million. The one analyst polled by S&P Capital IQ predicted a top line of $393.0 million on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $393.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at -$0.02. The two earnings estimates compiled by S&P Capital IQ forecast -$0.70 per share on the same basis. GAAP EPS were -$0.10 for Q3 versus -$0.80 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 53.0%, 390 basis points better than the prior-year quarter. Operating margin was 0.1%, 790 basis points better than the prior-year quarter. Net margin was -0.7%, 570 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $560.9 million. On the bottom line, the average EPS estimate is $0.79.
Next year's average estimate for revenue is $2.03 billion. The average EPS estimate is $2.82.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 63 members out of 93 rating the stock outperform, and 30 members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 27 give Scholastic a green thumbs-up, and eight 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 $37.00.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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