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Feb 28, 2022
Scholastic Q3 2022 Earnings Report
Reported a 24% increase in third quarter revenues driven by strong demand for products, particularly from book fairs and education solutions.
Key Takeaways
Scholastic Corporation reported a 24% increase in third-quarter revenues, driven by higher-than-expected revenue per fair from book fairs and strong demand for educational products. The company anticipates a strong fourth quarter with the spring book fair season and the peak selling season for Education Solutions.
Third quarter revenues increased by 24% due to strong demand.
Book fairs revenue increased due to higher revenue per fair.
Education Solutions revenues increased due to core instructional products and Scholastic Magazines+.
The company expects a strong fourth quarter, driven by education solutions and book fairs.
Scholastic
Scholastic
Scholastic Revenue by Geographic Location
Revenue by Geographic Location
International Revenue
CapyFin.com Forward Guidance
The Company anticipates a strong fourth quarter driven by its comprehensive education offerings and revenues related to summer reading initiatives.
Positive Outlook
- Number of in-person book fairs to continue to trend at 70% of pre-pandemic levels with improved revenue per fair.
- Continued strong customer re-engagement in the book clubs channel.
- Benefit of new releases in the trade channel.
- Robust pipeline for the Company’s media group.
- Strong fourth quarter driven by comprehensive education offerings.
Challenges Ahead
- Cost pressures for paper, printing, and freight will continue in the fourth quarter.
- Higher labor costs due to continuing inflationary pressures.
- Rising fuel costs will impact the business, primarily related to the delivery of book fairs.
- COVID-related issues and recently adopted restrictive regulations in China will result in continued softness in Asia.
- Balancing fulfillment capacity with customer delivery date expectations may shift orders to the first quarter of the next fiscal year.