Houghton Mifflin Harcourt (HMHC) Poss Q4 Loss of $1.48/Share

Houghton Mifflin Harcourt (NASDAQ: HMHC) reported Q4 EPS of ($1.48), $0.70 worse than the analyst estimate of ($0.78). Revenue for the quarter came in at $242 million versus the consensus estimate of $227.29 million.

"While we met our revised financial guidance and performed well in several key adoptions in 2016, we also faced challenges, including a smaller-than-expected adoption market and share, which put pressure on our overall performance," said Gordon Crovitz, HMH\'s Interim Chief Executive Officer and member of the Board of Directors. "As we look to 2017, we look forward to welcoming newly-announced President and CEO Jack Lynch, who will lead the Company in taking necessary steps to restore growth in our core business and improve our financial performance."

Joe Abbott, Chief Financial Officer of HMH added, "We view 2017 as an investment and transition year for HMH. We are utilizing our capital to enhance our competitive position in major adoption markets by making investments in our core curriculum products ahead of major selling opportunities in 2018, 2019 and beyond. We are also focused on improving our operating efficiency and right-sizing our cost structure. We are confident that these initiatives will put the Company on a path to sustainable, long-term growth and free cash flow generation through our industry\'s funding cycle, including high points and trough years."

2017 Outlook:

HMH expects 2017 net sales to be in a range of $1.325 to $1.405 billion and billings to be in the range of $1.375 to $1.455 billion. Content development spend for 2017 is expected to be in the range of $140 to $160 million, with total capital expenditure including non-plate capital expenditures in the range of $190 to $220 million.

For earnings history and earnings-related data on Houghton Mifflin Harcourt (HMHC) click here.

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