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Scholastic Slumps 20% on Gloomier 2013 View

November 23, 2012
Shares of Scholastic (SCHL) plummeted more than 20% Wednesday morning as the children’s book publisher’s sharply dimmed 2013 earnings outlook spooked Wall Street.

Citing shrinking sales of higher-margin products and uncertainty caused by the fiscal cliff, Scholastic warned late Tuesday it now anticipates posting EPS from continuing operations of $1.40 to $1.60 for 2013, well off its earlier projection of $2.20 to $2.50.

Even the optimistic end of the new range would badly miss expectations on Wall Street for full-year EPS of $2.27....

 

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