Scholastic Corp NASDAQ: (NASDAQ:SCHL) shares have reached a nine-year intra-day high based on the phenomenal revenue generated from sales of ''The Hunger Games" series of books. As a result SCHL has raised is full-year guidance and noted that its education business in Asia, has also contributed to its recent growth.
SCHL had earlier forecasted EPS of $1.75-$2.10, and revenue of $1.8-$1.9 Billion, however due to the growth not only from "The Hunger Games," but from continued success of the "Harry Potter" series and author Suzanne Collins. It has increased those numbers to an EPS of $2.60 to $2.90 a share, and revenue of $1.95-$2.05 Billion.
"Year-to-date gains in profitability put us in a good position to achieve this guidance even as we face a comparison against last year's strong fourth-quarter results in educational technology and services when we launched READ 180 Next Generation," Chief Financial Officer Maureen O'Connell said.
READ 180 is Scholastic's pro-active reading initiative that utilizes social networking, reading, and an interactive community to help students between kindergarten and 12th grade advance through the various skills of reading and reading comprehension.
Given the company's solid growth not only in the U.S., but in Europe and Asia as well, there is certainly a strong buying opportunity in SCHL. The stock has great upside, and continued success within "The Hunger Games" series will only add fuel to the fire.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.