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Nov 30, 2023

Scholastic Q2 2024 Earnings Report

Scholastic's Q2 2024 financial results were released, showing a decrease in revenue but an increase in operating income and diluted earnings per share.

Key Takeaways

Scholastic reported a decrease in revenue by 4% to $562.6 million, primarily due to reduced promotional spending and the elimination of unprofitable orders in Book Clubs. However, operating income increased by 1% to $101.3 million, and diluted earnings per share increased by 16% to $2.45. The company returned over $58 million to shareholders through share buybacks and dividends.

Revenues decreased by 4% to $562.6 million due to reduced promotional spending and unprofitable orders in Book Clubs.

Operating income increased by 1% to $101.3 million, driven by lower promotional spending and improvements in inventory and freight costs.

Diluted earnings per share increased by 16% to $2.45.

The company updated its fiscal year 2024 guidance, now expecting Adjusted EBITDA of $165 million to $175 million and revenue to be approximately level with or slightly below the prior year.

Total Revenue
$563M
Previous year: $588M
-4.3%
EPS
$2.45
Previous year: $2.12
+15.6%
Adjusted EBITDA
$124M
Previous year: $122M
+1.4%
Gross Profit
$329M
Previous year: $328M
+0.3%
Cash and Equivalents
$150M
Previous year: $261M
-42.7%
Total Assets
$1.83B
Previous year: $2.03B
-9.9%

Scholastic

Scholastic

Scholastic Revenue by Segment

Scholastic Revenue by Geographic Location

Forward Guidance

The Company has updated its guidance for fiscal year 2024 and now expects Adjusted EBITDA of $165 million to $175 million. Full-year revenue is now expected to be approximately level with or slightly below the prior year.

Revenue & Expenses

Visualization of income flow from segment revenue to net income