Why Scholastic Stock Was Tanking on Friday
Scholastic (NASDAQ: SCHL) saw its stock drop sharply on Friday, down 22.2% as of 10:55 a.m. ET, or about 19% year to date. It had been down as much as 26.2% in morning trading. The major indexes were down today as well, anywhere from 0.5% to 0.7% at 10:55 a.m. ET.
Shares of the children's book publisher dropped after the company posted lackluster third-quarter earnings on Thursday after market close. It also revised its guidance for fiscal 2023 downward due to economic headwinds.
The company typically lags in this quarter, but sales were lower than usual as revenue was down 6% year over year to $325 million. It had a net loss of $19.2 million, or $0.57 per share, which was a worsening from a net loss of $15.3 million a year ago this quarter. The net loss on the basis of adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was $5.4 million, down from net income of $5.9 million a year ago. The decline in revenue was due to a softening demand for children's books.
Source Fool.com
