Publishing company, Scholastic Corp(
) reported on Tuesday that they are lowering their 2013 estimates
due to spending cuts in schools.
The New York, NY based company reported that they are expecting
a $100 million decline in revenue in 2013 due to schools fearing
federal spending cuts.
The company now expects EPS to be in the range of $1.40 to $1.60
per share, down from their previously estimate range of $2.20 to
$2.40 per share.
SCHL expects to see revenue between $1.8 billion and $1.9
billion, down from their prior estimate of $1.9 billion to $2
The company stated that there are two major reasons why they are
expecting a decline. One reason being that many schools are cutting
back on books, saving money for Common Core, which is a a set of
standards set for math and reading. The other reason is the schools
fear of federal budget cuts, which are planned to occur
Scholastic shares were down $6.84, or -21.48% during premarket
The Bottom Line
Shares of Scholastic Corp (
) have a 1.57% dividend yield, based on last night's closing stock
price of $31.84. The stock had technical resistance around the $28
price area, but that level appears to already be broken. The next
level of support appears to be around the $25-$26 levels.
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.0 out of 5 stars.
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