Scholastic (SCHL) Expected to Beat Earnings Estimates: Can the Stock Move Higher?

Core Viewpoint - Scholastic (SCHL) is anticipated to report a year-over-year decline in earnings due to lower revenues, with a consensus outlook indicating a quarterly loss of $0.37 per share, reflecting a significant change of -640% compared to the previous year [1][3]. Earnings Report Expectations - The earnings report is scheduled for March 19, and if the results exceed expectations, the stock may rise; conversely, a miss could lead to a decline [2]. - Management's discussion during the earnings call will be crucial in determining the sustainability of any immediate price changes and future earnings expectations [2]. Revenue and Earnings Estimates - Revenues for the upcoming quarter are projected to be $331.04 million, which is a decrease of 1.3% from the same quarter last year [3]. - The consensus EPS estimate has been revised 0.85% higher in the last 30 days, indicating a slight bullish sentiment among analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Scholastic is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +6.85% [12]. - Scholastic currently holds a Zacks Rank of 1, suggesting a strong likelihood of beating the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, Scholastic exceeded the expected earnings of $2.07 per share by delivering $2.57, resulting in a surprise of +24.15% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [14]. Conclusion - Scholastic is viewed as a compelling candidate for an earnings beat, but investors should consider other factors that may influence stock performance beyond just the earnings report [17].