Scholastic (NASDAQ:SCHL) saw its shares tumble by more than 6% in pre-market today as the children’s book publisher reported weaker-than-expected fiscal second-quarter results. The company faced a year-over-year revenue decline and missed analyst projections, driven by softer performance in its publishing segment.
For the quarter, Scholastic posted adjusted earnings per share of $1.82, falling significantly short of the $2.93 analysts anticipated. Revenue declined 3% year-over-year to $544.6 million, missing the $587.06 million consensus estimate.
The downturn in revenue was primarily attributed to timing issues in the Children’s Book Publishing and Distribution segment. Changes in this year’s publishing schedule and lower fall fair bookings compared to the prior year weighed heavily on results. Revenue from Book Fairs, a critical contributor, dropped 5% year-over-year to $231 million due to fewer fairs held during the quarter.
Despite the disappointing quarterly performance, Scholastic reaffirmed its fiscal 2025 guidance, emphasizing confidence in its ability to meet full-year targets. Additionally, the company bolstered its financial flexibility by increasing its revolving credit facility to $400 million.