Publishing group Scholastic Corporation (NASDAQ:SCHL) said it was on track to hit full-year expectations despite seeing revenues slide in the second quarter.
In the three months ended November 30, sales dipped to US$598.3mln compared to US$623.1mln in the same period a year ago.
Last year’s figures were boosted by strong sales of Harry Potter and the Cursed Child – the most pre-ordered book of 2016 according to CNET – as well as a surge in demand for Fantastic Beasts and Where to Find Them on the back of last year’s film release.
Without any similar new releases to drag up this year’s numbers, operating profit also dropped from US$112.1mln to US$107.2mln.
Earnings per diluted share for the quarter came in at US$1.60 versus US$1.92 in the year-ago period.
The drop-off in performance was expected though and Scholastic president and chief executive Richard Robinson said the company remained on course to meet full-year forecasts.
It currently expects total revenue of between US$1.65-US$1.70bn and earnings per diluted share in the range of US$1.20 and US$1.30.
"The second quarter's solid results, with operating profit close to last year's level, confirm that we are on track to achieve our fiscal year 2018 goals when revenues and profits were expected to be lower after last year's best-selling new Harry Potter releases,” he said.
“Based on these results, we are affirming guidance for the year."
Away from Hogwarts, Robinson said it is starting to feel the benefit of its Scholastic 2020 plan – a three-year programme designed to improve operating profitability by 2020.
Scholastic held its third quarter dividend steady at US$0.15 per share, the same amount it paid out last year.
Shares fell 2.5% to US$41.16 early on Thursday morning.