Educational Development Q2 revenue falls, loss widens despite cost cuts

By Reuters News


Overview

  • US children's book publisher's fiscal Q2 revenue fell yr/yr

  • Net loss widened in fiscal Q2 from a year earlier

  • Company says cost reduction plan helped narrow pre-tax loss despite lower revenue


Outlook

  • Company did not provide specific financial guidance for the current qtr or full yr


Result Drivers

  • BRAND PARTNER PROMOTIONS - Co said product and recruiting promotions helped rebuild Brand Partner headcount and convert excess inventory into cash

  • COST REDUCTION PLAN - Co said ongoing cost reduction plan helped reduce general and administrative expenses and narrow losses before taxes

  • TAX EFFECT - Inability to recognize deferred tax assets caused net loss to widen despite improvement in pretax results


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

$4.07 mln

Q2 Loss Per Share

$0.19

Q2 Net Loss

$1.57 mln


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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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