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NEW YORK, Dec 19, 2006 (AFX via COMTEX) -- Publisher Scholastic Corp. said Tuesday that its second-quarter profit rose 12 percent, aided by improved margins in its children's book business, and topped Wall Street's consensus targets.
Net income grew to $75.1 million, or $1.75 per share, from $66.9 million, or $1.58 per share, a year ago. Revenue rose 6 percent to $735.5 million from $696.7 million last year.
Analysts surveyed by Thomson Financial expected more modest earnings of $1.71 per share on revenue of $703 million.
"Scholastic had a positive second quarter, led by revenue growth and improved margins in the children's book business. School Book Club profits rose significantly as a result of strong sales in core clubs and reduced promotion spending, while higher revenue per fair drove solid results in our Fairs business," said Richard Robinson, chief executive, president and chairman.
Looking ahead, Scholastic said it is on target to meet its fiscal 2007 goals, including its cost savings targets. The company reaffirmed its forecast of earnings of $1.55 to $1.85 per share on revenue of $2.1 to $2.2 billion.
Wall Street has pegged the company to earn $1.69 per share on sales of $2.15 billion.
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