Scholastic surges on stock buyback plans

Scholastic

24/10/2022 12:48

** Scholastic Corporation  SCHL.O  up 11.5% at $37.49
premarket as co looks to buy back some of its stock
    ** Children's book publisher intends to launch on Tues $75
mln stock tender offer in range of $35-$40 via modified "Dutch
Auction"  urn:newsml:reuters.com:*:nPn92KM9ja
    ** Co has ~34.4 mln shares outstanding for roughly $1.2 bln
market cap, per Refinitiv data
    ** Repurchase decision represents "both a major investment
in our own stock at what we believe are very attractive prices
and a first step as we review Scholastic's capital allocation
framework in light of our improved margin profile and long-term
free cash flow outlook," CEO Peter Warwick says in statement
    ** SCHL last month hit 18-mth low of $28.22 days after co
said fiscal Q1 operating loss increased due to lower sales in
its Education Solutions business amid rising costs
    ** Shares have lost ~19% over the past three months and ~16%
YTD through Fri close
 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-332-219-1430))