Nov. 21 (Bloomberg) -- Scholastic Corp., the publisher of the “Harry Potter” and “Hunger Games” books, plunged the most in almost a decade after the company slashed its profit and revenue forecasts.
The shares fell 18 percent to $26.05 at the close in New York, the biggest one-day decline since February 2003. The stock had gained 6.2 percent this year through yesterday.
Profit from continuing operations will be $1.40 to $1.60 a share in fiscal 2013, down from a previous forecast of as much as $2.40, the New York-based company said yesterday in a statement. Sales will be $1.8 billion to $1.9 billion, compared with an earlier projection of as much as $2 billion.
Educational customers are spending less on curriculum materials, partly because of funding being diverted to standardized testing, Scholastic said. The company also faces lower sales of the “Hunger Games” trilogy, which was completed in 2010, and superstorm Sandy hurt participation in its School Book Fair and Book Club programs.
Scholastic, whose fiscal year ends in May, will report its second-quarter results in mid-December.
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