Scholastic (NASDAQ:SCHL – Get Free Report) announced its earnings results on Thursday. The company reported ($3.63) EPS for the quarter, missing the consensus estimate of ($3.42) by ($0.21), FiscalAI reports. The company had revenue of $216.80 million for the quarter, compared to analysts’ expectations of $224.69 million. Scholastic had a net margin of 3.58% and a return on equity of 5.29%.
Here are the key takeaways from Scholastic’s conference call:
- Scholastic reaffirmed fiscal 2027 guidance for 2%–4% revenue growth, adjusted EBITDA of $135 million–$145 million, and free cash flow of $35 million–$40 million, with revenue growth expected to begin in the second quarter.
- Book fairs are entering the key fall season with bookings, fair counts, larger-school participation, and new school formats showing strong early momentum; management expects higher volume and operating leverage to support profitability.
- Entertainment revenue rose 48% year over year to $20.1 million, narrowing the segment’s adjusted operating loss, while a growing contracted production pipeline supports expectations for accelerating growth and improved profitability.
- The company highlighted a strong upcoming publishing slate, including major Harry Potter, Dog Man, and Hunger Games releases, but the resulting financial impact remains dependent on execution during the fall and holiday selling season.
- First-quarter revenue fell 4% to $216.8 million and adjusted net loss widened to $68.6 million, pressured by weaker Education and children’s book results, higher corporate costs, and continued school-budget pressure following the end of ESSER funding; free cash use increased to $110.8 million.
Scholastic Stock Down 1.5%
SCHL stock opened at $34.83 on Friday. Scholastic has a twelve month low of $25.91 and a twelve month high of $48.07. The company has a current ratio of 1.23, a quick ratio of 0.78 and a debt-to-equity ratio of 0.10. The company has a market capitalization of $656.89 million, a P/E ratio of 14.88, a PEG ratio of 1.68 and a beta of 1.01. The firm has a 50 day simple moving average of $39.71 and a 200-day simple moving average of $40.45.
Scholastic Announces Dividend
Scholastic News Summary
Here are the key news stories impacting Scholastic this week:
- Positive Sentiment: Management affirmed fiscal 2027 guidance, calling for approximately 2%-4% revenue growth, adjusted EBITDA of $135 million-$145 million and free cash flow of $35 million-$40 million as the fall Book Fairs season begins. Scholastic forecasts fiscal 2027 growth and EBITDA
- Positive Sentiment: Entertainment revenue increased $6.5 million to $20.1 million, while International revenue rose $1.1 million to $60.5 million, providing some diversification against weakness in the core businesses.
- Positive Sentiment: Zacks upgraded SCHL from “strong sell” to “hold,” although the change is unlikely to offset the disappointing results.
- Neutral Sentiment: The stock was highlighted among companies investors were watching Friday, but the article did not identify a separate business catalyst. Stocks to watch heading into Friday
- Negative Sentiment: Fiscal first-quarter revenue fell 4% year over year to $216.8 million, below the $224.7 million analyst consensus. Children’s Book Publishing and Distribution revenue declined $3.6 million to $105.8 million, while Education revenue dropped $9.7 million to $30.4 million. Scholastic fiscal 2027 first-quarter results
- Negative Sentiment: The company reported a quarterly loss of $3.63 per share, wider than the expected $3.42 loss and the $2.52 loss recorded a year earlier. The results prompted a sharp after-hours decline in SCHL shares. Scholastic reports first-quarter loss
- Negative Sentiment: Operating cash use increased to $94.6 million from $81.8 million a year earlier. Recent insider activity also showed selling without reported purchases, adding to investor caution.
Wall Street Analysts Forecast Growth
SCHL has been the topic of a number of analyst reports. B. Riley Financial lifted their price objective on shares of Scholastic from $40.00 to $42.00 and gave the company a “neutral” rating in a research note on Wednesday, July 8th. Zacks Research upgraded shares of Scholastic from a “strong sell” rating to a “hold” rating in a research note on Tuesday. Finally, Weiss Ratings raised shares of Scholastic from a “hold (c)” rating to a “hold (c+)” rating in a report on Friday, September 11th. Three equities research analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $42.00.
Check Out Our Latest Stock Report on SCHL
Insider Activity at Scholastic
In other Scholastic news, Director Andres A. Alonso sold 2,112 shares of the firm’s stock in a transaction on Wednesday, August 26th. The shares were sold at an average price of $40.28, for a total transaction of $85,071.36. Following the completion of the transaction, the director directly owned 21,189 shares of the company’s stock, valued at $853,492.92. This trade represents a 9.06% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Kaya Henderson sold 3,250 shares of the business’s stock in a transaction dated Thursday, August 6th. The stock was sold at an average price of $40.25, for a total transaction of $130,812.50. Following the completion of the sale, the director directly owned 7,113 shares of the company’s stock, valued at $286,298.25. The trade was a 31.36% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 294,986 shares of company stock valued at $11,731,334 over the last ninety days. Corporate insiders own 12.77% of the company’s stock.
Scholastic Company Profile
Scholastic Corporation is a global children’s publishing, education and media company. Founded in 1920 by M. R. Robinson, the company develops and distributes books, classroom materials, digital learning resources and educational media for children, families, teachers and schools.
Its publishing portfolio includes original and licensed children’s books, series and educational titles, while its education business provides classroom magazines, supplemental curriculum materials, professional learning resources and digital platforms.
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