Shares of Scholastic Corp (SCHL) experienced a significant boost, surging over 6% during the extended trading session on Thursday. The publishing company delighted investors by announcing better-than-expected fiscal fourth-quarter earnings and projecting a potential revenue growth of up to 5% for the upcoming year.
According to the report, Scholastic earned an impressive $76 million, equivalent to $2.26 per share, in the quarter compared to $52 million, or $1.46 per share, during the same period last year. The company’s revenue also showed improvement with a 3% rise, reaching $529 million. This can be attributed to the growth in its children’s book publishing, distribution, and book fairs businesses.
Looking ahead, Scholastic anticipates a revenue growth of 3% to 5% for fiscal year 2024. Additionally, the company sets a target adjusted EBITDA range of $190 million to $200 million for the year. Scholastic is not only focused on protecting margins and sustaining growth in the near term, but also executing a long-term strategy aimed at driving further expansion, impactful outcomes, and increasing shareholder value.
Following the news, shares of Scholastic closed the regular trading day with a slight decline of 1.7%.