Scholastic Corp (SCHL) Posts Q1 Loss of $1.05/Share

Scholastic Corp (NASDAQ: SCHL) reported Q1 EPS of ($1.05), $0.21 worse than the analyst estimate of ($0.84). Revenue for the quarter came in at $283.8 million versus the consensus estimate of $285 million.

The Q1 loss includes 2 cents per share in costs.

First quarter revenue increases primarily reflected gains in guided reading and classroom book collections, educational technology math products and programs, international channels, and school clubs and fairs. While the first quarter is not significant for clubs and fairs since most schools are not in session, their combined 20% revenue growth reflects a continuing positive trend. In Educational Technology, most of the revenue decline compared to the prior year came from a tough comparison due to the launch of a new slate of products in the first quarter of last year, including a significant delivery of the Company's Common Core Code X® middle school language arts print curriculum for New York City. First quarter operating loss increased $7.5 million, or 16% compared to the loss in the prior year period, primarily due to lower results in the Company's Educational Technology segment, including higher amortization costs related to the new programs, and slightly higher losses in certain international markets, as well as in the Company's media operations due to higher amortization costs for new programming.

Scholastic affirmed its fiscal 2015 outlook for total revenue of approximately $1.9 billion and earnings per diluted share from continuing operations in the range of $1.80 to $2.00, before the impact of any one-time items associated with cost reduction programs or non-cash, non-operating items. The Company continues to expect free cash flow in the range of $65 to $85 million.

*** The Street is looking for FY15 EPS of $2.07.

For earnings history and earnings-related data on Scholastic Corp (SCHL) click here.

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