Scholastic Beats on EPS But GAAP Results Lag
Scholastic (NAS: SCHL) reported earnings on July 18. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended May 31 (Q4), Scholastic met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly. Non-GAAP earnings per share contracted significantly. GAAP earnings per share contracted significantly.
Gross margins expanded, operating margins contracted, net margins dropped.
Scholastic booked revenue of $506.9 million. The one analyst polled by S&P Capital IQ looked for sales of $514.3 million on the same basis. GAAP reported sales were 25% lower than the prior-year quarter's $678.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.90. The two earnings estimates compiled by S&P Capital IQ anticipated $0.83 per share. Non-GAAP EPS of $0.90 for Q4 were 54% lower than the prior-year quarter's $1.96 per share. (The prior-year quarter included -$0.11 per share in earnings from discontinued operations.) GAAP EPS of $0.66 for Q4 were 63% lower than the prior-year quarter's $1.76 per share. (The prior-year quarter included -$0.11 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 55.3%, 300 basis points better than the prior-year quarter. Operating margin was 8.0%, 650 basis points worse than the prior-year quarter. Net margin was 4.2%, 420 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $308.8 million. On the bottom line, the average EPS estimate is -$0.76.
Next year's average estimate for revenue is $1.92 billion. The average EPS estimate is $2.23.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 68 members out of 97 rating the stock outperform, and 29 members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 give Scholastic a green thumbs-up, and seven give it a red thumbs-down.
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The article Scholastic Beats on EPS But GAAP Results Lag originally appeared on Fool.com.
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