David Hernandez
Long/short equity, medium-term horizon, growth at reasonable price, ETF investing

Scholastic's Education Segment Won't Be Able To Drive Revenue Higher

Sustainable Growth Needed

Scholastic Corporation (NASDAQ:SCHL) has failed to grow revenue over the last 10 years. Revenue has decreased a total of 18.4% from 2004 to 2014. Management has been unable to find a sustainable revenue driver. Management believes education will be able to solve the company's growth issues. On the Q4 2013 conference call, Maureen E. O'Connell, CFO, talked about education

For 2014, this revenue and profit growth will be driven by 2 major themes. The first is in education. As schools move towards adopting customized solutions that include print and technology elements, Scholastic expects to capitalize on major opportunities in the education segment, based on a greater focus on digital solutions and implementation of curriculum...
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