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Are You Expecting This from Scholastic?

Monday - 3/18/2013, 5:15pm  ET

Scholastic is expected to report Q3 earnings on March 21. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Scholastic's revenues will wane -17.7% and EPS will remain in the red.

The average estimate for revenue is $384.2 million. On the bottom line, the average EPS estimate is -$0.39.

Revenue details
Last quarter, Scholastic booked revenue of $616.2 million. GAAP reported sales were 10% lower than the prior-year quarter's $685.3 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $1.89. GAAP EPS of $1.89 for Q2 were 27% lower than the prior-year quarter's $2.60 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 57.3%, 100 basis points worse than the prior-year quarter. Operating margin was 16.4%, 400 basis points worse than the prior-year quarter. Net margin was 10.0%, 210 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $1.84 billion. The average EPS estimate is $1.52.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 71 members out of 103 rating the stock outperform, and 32 members rating it underperform. Among 34 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 27 give Scholastic a green thumbs-up, and seven give it a red thumbs-down.

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This article was originally published as Are You Expecting This from Scholastic?on Fool.com

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