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Scholastic ups guidance
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December 18, 2001: 4:55 p.m. ET
Harry Potter publisher beats 2Q results and raises full-year profit target.
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NEW YORK (CNN/Money) - Harry Potter publisher Scholastic Corp. posted a better-than-expected gain in fiscal second-quarter profits and raised its guidance for future results.
The New York-based company earned a record $67 million, or $1.67 a share, in the period ended Nov. 30. That tops the $1.64 a share forecast of analysts surveyed by earnings tracker First Call, as well as the net income of $56 million, or $1.47 a share, in the year-earlier period.
Shares of Scholastic (SCHL: Research, Estimates) jumped $1.89, or 4 percent, to $44.65 in after-hours trading following the report, after posting a 57-cent gain in regular-hours trading Tuesday.
Revenue in the quarter fell 5 percent to $637.2 million from the record revenue of $668.3 million a year ago, soon after the July 2000 release of "Harry Potter and the Goblet of Fire," the fourth book in the series. The release of the movie based on the first of those books in November helped spur sales in the recent period.
The company said it now sees full fiscal-year earnings per share of $2.45 to $2.55, up from its earlier EPS target of $2.35 to $2.50. First Call's forecast calls for EPS of $2.40 for the year. The company said that sales of Harry Potter books reached $54 million during the first half of the fiscal year, topping its earlier target of full-year sales of $50 million. It said it is now looking at full-year Harry Potter sales of $70 million.
The company said it was able to increase profits in the face of decreased revenue through a cost-saving program and a $5 million savings in interest expense. 
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