Scholastic Corp (SCHL) Reports Q3 Loss of $0.30, Miss on Revenues; Boosts FY18 EPS Outlook

Note: EPS may not be comparable

Scholastic Corp (NASDAQ: SCHL) reported Q3 EPS of ($0.30), versus $0.00 reported last year. Revenue for the quarter came in at $344.7 million versus the consensus estimate of $350.1 million.

The third quarter 2018 GAAP net loss from continuing operations was $1.41 per diluted share, compared to a third quarter 2017 GAAP net loss from continuing operations of $0.45 per diluted share. Third quarter 2018 results include a non-cash pre-tax charge of $39.6 million, or $0.76 per share, related to the termination of the Company\'s domestic defined benefit retirement plan and $8.3 million, or $0.24 per share, for the re-measurement of the Company\'s U.S. deferred tax balance in connection with the passage of the Tax Cuts and Jobs Act of 2017 (\"TCJA\"). Excluding these and other one-time items in each period described below, third quarter 2018 loss per diluted share was $0.30, compared to a loss of $0.35 per diluted share in the third quarter of 2017 (see Non-GAAP Financial Tables below).

Raising Fiscal 2018 EPS Outlook

Scholastic affirmed its fiscal 2018 outlook for total revenue of $1.65 to $1.70 billion. The Company now expects earnings per diluted share from continuing operations in the range of $1.35 to $1.45, excluding one-time items, an increase from its earlier guidance of $1.20 to $1.30 per diluted share. The revised EPS guidance range reflects the partial fiscal year impact of the 2017 U.S. tax reform legislation. The Company continues to expect free cash use in the range of $10 to $20 million.

GUIDANCE:

Scholastic Corp sees FY2018 EPS of $1.35-$1.45. Scholastic Corp sees FY2018 revenue of $1.65-1.7 million.

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

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