LONDON, UK / ACCESSWIRE / January 10, 2018 / Active-Investors.com has just released a free earnings report on Scholastic Corp. (NASDAQ: SCHL). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=SCHL. Scholastic reported its second quarter fiscal 2018 operating results on December 13, 2017. The publishing, education, and media Company re-affirmed its fiscal 2018 guidance. Register today and get access to over 1000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Scholastic most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

Scholastic's revenue in Q2 FY18 was $598.3 million compared to $623.1 million in Q2 FY17, reflecting a decrease of 4%. The Company's reported numbers were below analysts' expectations of $601.4 million.

During Q2 FY18, Scholastic's operating profit from continuing operations was $107.2 million versus $112.1 million in Q2 FY17.

Scholastic reported Q2 FY18 earnings per diluted share from continuing operations of $1.60 versus $1.92 in Q2 FY17, including one-time expenses of $0.32 in the reported period and $0.07 in the prior year's same period. Excluding these one-time items, Scholastic's Q2 FY18 earnings from continuing operations per diluted share were $1.92 versus $1.99 in the prior year's same period. The Company's earnings topped Wall Street's estimates of $1.75 per share.

Scholastic's Segment Results

During Q2 FY18, Children's Book Publishing and Distribution segment's revenue was $411.8 million compared to $432.5 million in Q2 FY17, reflecting a decline of 5%. The lower revenues were anticipated given the strong front-list performance of Fantastic Beasts and Where to Find Them?: The Original Screenplay, released in Q2 FY17, and Harry Potter and the Cursed Child, Parts One and Two, the best-selling book in North America last year.

Scholastic's Book Fairs remained on plan posting revenues of $231.0 million, up 2% on a y-o-y basis, and while revenue in Book Clubs was $99.9 million, down 7% on a y-o-y basis, the division achieved greater profitability as a result of lower cost digital marketing and improved efficiencies in customer service and fulfillment. The reported quarter operating income for the segment was $115.1 million versus $121.1 million in the prior year's same period, primarily as a result of the lower Harry Potter sales in the trade channel.

For Q2 FY18, the Education segment's revenue was $70.9 million compared to $71.1 million in Q2 FY17 with slightly better results in classroom books, including core literacy instruction and classroom magazines. The segment's operating income totaled $3.8 million in the reported quarter, $4.9 million lower than the prior year's corresponding period operating income of $8.7 million, primarily as a result of higher employee expenses incurred for an expanded sales force with expertise in solution selling of core literacy curriculum programs.

During Q2 FY18, the International segment's revenue was $115.6 million compared to $119.5 million in Q2 FY17, down 3% on a y-o-y basis. The lower revenues in the reported quarter were mainly due to the higher level of Harry Potter-related sales in the Company's Canada business and export channel in the prior year's same period. The segment's operating income was $14.7 million compared to operating income of $16.7 million in the prior year's comparable period. The lower operating income in the quarter was largely the result of the lower Harry Potter sales, as expected.

Cash Flow and Cash Position

Scholastic's net cash provided by operating activities was $120.8 million in Q2 FY18 compared to $179.7 million in Q2 FY17. The Company had free cash flow of $90.7 million in the reported quarter compared to free cash flow of $164.1 million in the year earlier same quarter as the Company realized a higher level of customer remittances from the significant sales of new Harry Potter publishing in H1 FY17.

At the end of Q2 FY18, Scholastic's cash and cash equivalents exceeded the Company's total debt by $376.5 million compared to $435.6 million a year ago. The Company distributed $5.3 million in dividends and reacquired $8.6 million of its common stock in open market transactions over the course of the reported quarter.

Scholastic's Board of Directors declared a quarterly cash dividend of $0.15 per share on the Company's Class A and Common Stock for Q3 FY18. The dividend is payable on March 15, 2018, to shareholders of record as of the close of business on January 31, 2018.

Capital Investment Update

During Q2 FY18, Scholastic spent $21.3 million of capital including $9.1 million towards the redesign and upgrade of its headquarters building, and $7.8 million towards strategic technology development and deployment. Fiscal year-to-date, the Company has spent $54.0 million of capital including $29.8 million in construction-related investments and $17.8 million in new strategic technologies.

Outlook

Scholastic affirmed its fiscal 2018 outlook for total revenue of $1.65 billion to $1.70 billion and earnings per diluted share from continuing operations in the range of $1.20 to $1.30, excluding one-time items. The Company continues to expect free cash use in the range of $10 million to $20 million.

Stock Performance Snapshot

January 09, 2018 - At Tuesday's closing bell, Scholastic's stock was slightly down 0.05%, ending the trading session at $39.37.

Volume traded for the day: 149.01 thousand shares, which was above the 3-month average volume of 132.13 thousand shares.

Stock performance in the previous three-month period ? up 6.49%

After yesterday's close, Scholastic's market cap was at $1.38 billion.

Price to Earnings (P/E) ratio was at 85.96.

The stock has a dividend yield of 1.52%.

The stock is part of the Services sector, categorized under the Publishing - Books industry. This sector was up 0.1% at the end of the session.

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