Scholastic Q3 2024 Earnings Report
Key Takeaways
Scholastic reported approximately level revenues of $323.7 million, a slight decrease from the prior year. The operating loss increased to $34.9 million, impacted by higher spending on growth initiatives. The company returned over $60 million to shareholders through repurchases and dividends and affirmed its fiscal 2024 guidance.
Consolidated trade sales increased by 7%, driven by strong performance in the U.S., Canada, and the UK.
Scholastic announced an agreement to invest in 9 Story Media Group, expanding its content creation strategy.
The company experienced modest revenue declines in School Reading Events and Education divisions due to a complex environment in U.S. schools.
Over $60 million was returned to shareholders through share repurchases and dividends during the quarter.
Scholastic
Scholastic
Scholastic Revenue by Segment
Scholastic Revenue by Geographic Location
Forward Guidance
Scholastic affirmed its revised fiscal 2024 guidance, expecting strong performance in the largest and most profitable quarter.
Positive Outlook
- Strong expectations for the largest and most profitable quarter of the year
- Continued successes in children’s book publishing and entertainment
- Multiple new releases expanding Scholastic’s presence on bestseller lists
- Greenlighting of a second season of the Goosebumps® TV series
- Strategic investment in 9 Story Media Group to broaden content creation
Challenges Ahead
- Modest revenue declines in School Reading Events and Education divisions
- Impact of the complex environment in U.S. schools
- Lower U.S. Book Clubs revenues due to strategic repositioning
- Increased operating loss due to higher spending on growth initiatives
- Shift in the overall seasonality of the Education Solutions segment sales
Revenue & Expenses
Visualization of income flow from segment revenue to net income