|Over a week ago|
Scholastic sees improving business conditions in 2H21 » 16:0409/2409/24/20
The company has…
The company has substantially completed work on lowering its cost base by $100M, and believes that a significant portion of these cost savings, as well as new measures being taken, should continue to favorably impact future period results. The outlook for the company's trade and education businesses remains positive with a robust frontlist of bestselling series and authors scheduled to release over the remainder of the fiscal year and Scholastic's digital education programs and digital-only magazines gaining momentum as schools look to learning solutions which can be used at school and at home. However, delays in club orders and fair bookings will likely lead to a significant decline in revenues in the company's Children's Book Publishing and Distribution segment in the second quarter. The company believes that business conditions should improve in the second half of its fiscal year as schools adjust to operational changes in response to COVID-19, and we expect increasing demand for the company's slate of flexible new services, such as our virtual and shippable fair options and home delivery of club and fair orders, as well as our safe and easy in-person fairs. Given the variability in school schedules, as well as the possibility of new COVID outbreaks and their potential impact on schools, Scholastic is not providing a financial outlook for fiscal year 2021.
Scholastic says 'sufficient cash reserves' to support FY21 business plan » 16:0309/2409/24/20
At quarter-end, the…
At quarter-end, the company's cash and cash equivalents exceeded total debt by $135.6M, compared to $186.4M a year ago. The company continues to believe that it has sufficient cash reserves and access to liquidity to support its FY21 business plan.
Scholastic reports Q1 adjusted EPS (90c), one estimate ($1.74) » 16:0209/2409/24/20
Reports Q1 revenue…
Reports Q1 revenue $215.2M, one estimate $219M.
Scholastic options imply 14.7% move in share price post-earnings » 15:1909/2409/24/20
Pre-earnings options volume in Scholastic is 4.1x normal with calls leading puts 9:4. Implied volatility suggests the market is anticipating a move near 14.7%, or $2.95, after results are released. Median move over the past eight quarters is 7.2%.
|Over a month ago|
Scholastic reports Q4 adjusted EPS (23c), one estimate (93c) » 16:5507/2307/23/20
Reports Q4 revenue…
Reports Q4 revenue $$284.0M, one estimate $272.6M. "In Q4, we took decisive action to mitigate the impact of COVID-19 on our operating income and cash flow, while continuing to support schools, teachers, parents and children as schools were closed in the U.S. and globally," said CEO Richard Robinson. "Responding to the revenue drop from school closings of $187M, primarily from book clubs and book fairs, we focused on four key areas. First, we successfully drove a 45% increase in trade sales in the quarter, as children who could not access our in-school clubs and fairs found our books in stores and on-line(...) Second, our new Scholastic Learn at Home hub, a free at-home digital learning tool for pre-K to Grade 6 and up, reached over 20 million families as they looked for support for home learning, paving the way for future revenue opportunities. Third, we successfully preserved cash through reducing inventory purchases, cutting capital spending, and suspending our stock buy-back program. And fourth, we slashed costs by more than $50M in the quarter through closing distribution centers in highly impacted regions, scaling our operations to meet near-term business needs, and reducing labor costs. We ended the fiscal year with a strong balance sheet, with over $175M in net cash and stockholders' equity of approximately $1.2B."
|Over a quarter ago|
Fly Intel: After Hours Movers » 18:2803/1903/19/20
CRWD, SCHL, RAND, UAL, OLLI, TSLA, KSS, BBBY, YELP
UP AFTER EARNINGS:…
UP AFTER EARNINGS: Crowdstrike (CRWD) up 19.9%... Scholastic (SCHL) up 1.8%. ALSO HIGHER: Rand Capital (RAND) up 154% after announcing its Rheonix developing COVID-19 assay... United Airlines (UAL) up 3.4% after Apollo reportedly buys part of UA's loan. DOWN AFTER EARNINGS: Ollie's Bargain (OLLI) down 7.4%. ALSO LOWER: Tesla (TSLA) down 5.7% after suspending production at Fremont... Kohls (KSS) down 3.1% after withdrawing guidance, closing stores... Bed Bath Beyond (BBBY) down 2.0% after announcing over 50% of all stores closing... Yelp (YELP) down 1.3% after withdrawing guidance. Movers as of 18:15ET.
Scholastic suspends 2020 guidance » 16:0703/1903/19/20
Scholastic reported that…
Scholastic reported that it cannot affirm its current guidance ranges as a direct result of mandated school closings in North America, the company's largest market. Through the nine months ended February 29, 2020, the company remained on course to achieve its operating goals for 2020 fiscal year revenues and Adjusted EBITDA. The Company's long-term capital investment plan also remained on target, although project spending is now being deferred to safeguard the company's cash position against lower business volumes. The company has already taken actions to help mitigate any adverse impact to profitability and cash flow in Q4, including: a freeze on all spending not directly tied to short-term revenue; reduced inventory purchasing; a reduction in labor costs; and temporary closures of warehousing and distribution centers in highly impacted regions, while working proactively with schools.
Scholastic reports Q3 EPS ex-items (34c), consensus (64c) » 16:0503/1903/19/20
Reports Q3 revenue…
Reports Q3 revenue $373.3M, consensus $342.1M. "Following our strong Q3 with revenue gains of 4% and a threefold improvement in adjusted EBITDA, and year-to-date results trending ahead of our fiscal year targets, Scholastic's business in Q4 will be affected by coronavirus-related school closings mandated by states and districts, which will impact our school-based businesses directly. Given this situation, we will no longer be affirming guidance for the fiscal year," said CEO Richard Robinson. "While revenues will be lower in the seasonally important Q4, we are taking aggressive actions to reduce operating expenses throughout the company, including the temporary closing of warehousing and distribution centers, and a freeze on hiring, travel and other discretionary spending not directly tied to short-term revenue, while working hard to ensure the safety and well-being of our staff worldwide. And still, we remain dedicated to our mission, providing the children and schools we serve free access to Scholastic's Learn at Home digital hub with learning content for children from Pre-K to 12, which has seen over eight million visitors in less than one week as parents turn to Scholastic for resources to help their children learn at home. Scholastic has significant cash reserves and access to liquidity, and we have implemented immediate actions to protect our strong financial position in this period of uncertainty by discontinuing all non-essential cash outlays and deferring capital spending plans (...)"
Scholastic completes acquisition of Mrs. Nelson's Book Fairs » 12:4312/2012/20/19
Scholastic Corporation announced that its wholly-owned subsidiary Scholastic Book Fairs has completed the acquisition of the assets of Pomona, California-based Mrs. Nelson's Book Fairs. Financial terms of the transaction are undisclosed.
Fly Intel: After Hours Movers » 18:4112/1912/19/19
SCHL, AIR, MITK, CNCE, AXGT, GPOR, BJ, CAMP, SGH, NKE, KNX
UP AFTER EARNINGS:…
UP AFTER EARNINGS: Scholastic Corp (SCHL) up 11.5%... AAR Corp (AIR) up 7.3%. ALSO HIGHER: Mitek (MITK) up 6.8% after new $10M stock buyback... Concert Pharma (CNCE) up 5.8% after completing CTP-543 open label trial... Axovant (AXGT) up 5.6% after providing clinical update for AAV-GM1 therapy... Gulfport Energy (GPOR) up 2.6% after divesting $100M in non-core assets... BJs Wholesale (BJ) up 1.4% after naming new CEO. DOWN AFTER EARNINGS: CalAmp (CAMP) down 11.0%... Smart Global (SGH) down 4.2%... Nike (NKE) down 1.8%. ALSO LOWER: Knight-Swift Transportation (KNX) down 2.7% after cutting Q4 guidance. Movers as of 18:30ET.