EDUC - Educational Development Stock Falls As Earnings Press Release Omits Mention Of Significant Non-Recurring Expenses

• Failure of earnings press release to identify significant expenses as non-recurring led investors to believe that operating margins had deteriorated when, in fact, they were improving.
• Financial statements per 10-Q indicate YOY operating margin decline from 8.9% to 8.2%, whereas statements adjusted for non-recurring items showed an increase to 9.6%.
• Despite 63.5% YOY revenue growth and 54.5% growth in YOY EPS, EDUC stock still declined by over 5% the day following earnings report.
• Though EDUC's EPS is annualizing over $2 and annual revenues are growing in excess of60%, the stock continues to trade (at 1/21 close) below 8 times earnings.

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