Educational Development (NASDAQ:EDUC – Get Free Report) released its earnings results on Thursday. The company reported ($0.16) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.41 by ($0.57), Zacks reports. The business had revenue of $4.54 million for the quarter, compared to analysts’ expectations of $53.10 million. Educational Development had a negative return on equity of 17.66% and a net margin of 10.15%.
Here are the key takeaways from Educational Development’s conference call:
- Brand partner growth improved meaningfully after the March recruiting promotion, with active brand partners rising to more than 5,200 and average active partners for the quarter at 5,300, up from 7,700 a year ago. Management said keeping that base growing is a key part of the turnaround plan.
- Revenue declined but cost cuts helped offset some of the pressure, as first-quarter net revenues fell to $4.8 million from $7.1 million last year while the net loss remained $1.4 million. Executives also said expense reductions are expected to save more than $1.2 million for the fiscal year.
- Inventory reductions generated cash, with inventory falling from $37.7 million to $36.2 million during the quarter and cash increasing from $1.3 million to $1.8 million. Management said the company remains focused on turning inventory into cash while replenishing key titles.
- New titles and recent promotions are driving early enthusiasm, including PaperPie Day, which boosted recruiting, site-wide sales, account credit usage, and customer engagement. Management said the new title rollout is still early, but field excitement has improved.
- Management is betting on IT and marketing initiatives to support the turnaround, including an AI-assisted “Read” book buddy, wish list and registry features, and targeted offers for specific audiences. They said these changes are meant to reduce friction and better reach newer generations of buyers and brand partners.
Educational Development Stock Performance
NASDAQ EDUC opened at $1.57 on Friday. The stock’s fifty day moving average is $1.47 and its two-hundred day moving average is $1.40. The firm has a market capitalization of $13.36 million, a P/E ratio of 6.04 and a beta of 1.02. Educational Development has a fifty-two week low of $1.00 and a fifty-two week high of $1.84.
Wall Street Analyst Weigh In
Check Out Our Latest Stock Report on Educational Development
Institutional Trading of Educational Development
A number of hedge funds and other institutional investors have recently modified their holdings of EDUC. State Street Corp boosted its position in shares of Educational Development by 106.0% during the 4th quarter. State Street Corp now owns 31,876 shares of the company’s stock valued at $42,000 after acquiring an additional 16,400 shares during the last quarter. Citadel Advisors LLC purchased a new position in Educational Development during the third quarter worth about $36,000. Finally, Bridgeway Capital Management LLC purchased a new position in Educational Development during the fourth quarter worth about $29,000. 19.60% of the stock is owned by institutional investors and hedge funds.
About Educational Development
Educational Development Corporation, through its subsidiaries, engages in the direct marketing and digital retailing of educational and inspirational reading materials, including books, Bibles, devotionals, and related gift items. The company’s product portfolio extends to children’s literature, music, and home décor, targeting consumers in the faith-based and human-interest segments. Products are sold under proprietary brands across multiple online and catalog platforms.
Central to the company’s operations are its e-commerce websites and print catalogs, which support both retail and wholesale distribution channels.
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