Scholastic (NASDAQ:SCHL) tumbled 9.6% postmarket Thursday after posting fiscal third-quarter earnings where revenues declined year-over-year and the company cut its profitability outlook and halved its full-year sales expectations.
Revenues dipped nearly 6% to $324.9M, as international sales slipped thanks to lower revenues in Canada and the UK in Trade and Book Clubs channels.
Operating loss swelled to $27.7M from a year-ago loss of $19.5M, and the company swung to loss before interest, taxes, depreciation and amortization of $5.4M from a year-ago gain of $5.9M/
Revenue by segment: Children's Book Publishing and Distribution, $204M (up 1.4%); Education Solutions, $70M (down 9.3%); International, $50.9M (down 18.9%).
"With tougher market conditions expected to continue into Q4, we have updated our fiscal 2023 outlook. We have quickly adjusted short-term spending, in line with our revised top-line outlook, and focused on initiatives to improve margins," said CEO/President Peter Warwick.
The company now expects full-year adjusted EBITDA of $175M-$185M, down from $195M-$205M, and it sees revenues growing at a rate of 4% vs. a previous range of 8-10%.