Shares of Scholastic Corporation (NASDAQ:SCHL – Get Free Report) gapped down prior to trading on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $34.83, but opened at $29.88. Scholastic shares last traded at $31.9850, with a volume of 170,425 shares traded.
The company reported ($3.63) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($3.42) by ($0.21). The company had revenue of $216.80 million for the quarter, compared to the consensus estimate of $224.69 million. Scholastic had a net margin of 3.58% and a return on equity of 5.29%.
Scholastic Announces Dividend
The company also recently declared a quarterly dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Friday, October 30th will be issued a $0.25 dividend. The ex-dividend date of this dividend is Friday, October 30th. This represents a $1.00 annualized dividend and a dividend yield of 3.1%. Scholastic’s dividend payout ratio is presently 42.74%.
More Scholastic News
- Positive Sentiment: Scholastic reaffirmed its fiscal 2027 targets, including approximately 2%–4% revenue growth, adjusted EBITDA of $135 million–$145 million, and free cash flow of $35 million–$40 million. Management expects momentum to improve as the fall Book Fairs season progresses. Scholastic fiscal 2027 outlook
- Positive Sentiment: Entertainment revenue increased by $6.5 million to $20.1 million, while international revenue rose by $1.1 million to $60.5 million, providing some offsets to weakness in other businesses. Scholastic first-quarter revenue details
- Neutral Sentiment: Zacks upgraded Scholastic from “strong sell” to “hold,” indicating a less negative analyst stance but not a bullish recommendation. Zacks Scholastic earnings report
- Negative Sentiment: Fiscal first-quarter revenue fell 4% year over year to $216.8 million, missing the $224.69 million analyst estimate. Children’s Book Publishing and Distribution revenue declined by $3.6 million, while Education revenue dropped by $9.7 million to $30.4 million. Scholastic first-quarter results
- Negative Sentiment: Scholastic reported a loss of $3.63 per share, wider than the $3.42 consensus loss and the $2.52 loss recorded a year earlier. Operating cash use also increased to $94.6 million from $81.8 million, raising concerns about near-term profitability and cash flow. Why Scholastic shares fell after hours
Analyst Upgrades and Downgrades
Several analysts have issued reports on SCHL shares. Weiss Ratings raised Scholastic from a “hold (c)” rating to a “hold (c+)” rating in a research note on Friday, September 11th. B. Riley Financial upped 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. Finally, Zacks Research raised Scholastic from a “strong sell” rating to a “hold” rating in a research note on Tuesday. Three research analysts have rated the stock with a Hold rating, Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $42.00.
Check Out Our Latest Analysis on SCHL
Insider Transactions at Scholastic
In related news, Director Kaya Henderson sold 3,250 shares of Scholastic stock in a transaction dated Thursday, August 6th. The stock was sold at an average price of $40.25, for a total value of $130,812.50. Following the completion of the sale, the director directly owned 7,113 shares in the company, valued at approximately $286,298.25. This trade represents a 31.36% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Iole Lucchese sold 289,624 shares of the company’s stock in a transaction on Wednesday, August 26th. The shares were sold at an average price of $39.76, for a total value of $11,515,450.24. Following the sale, the executive vice president owned 289,623 shares of the company’s stock, valued at approximately $11,515,410.48. This trade represents a 50.00% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 294,986 shares of company stock valued at $11,731,334. Insiders own 12.77% of the company’s stock.
Hedge Funds Weigh In On Scholastic
Several large investors have recently added to or reduced their stakes in SCHL. BlackRock Inc. acquired a new stake in Scholastic during the second quarter worth approximately $120,724,000. Empowered Funds LLC purchased a new position in shares of Scholastic in the 2nd quarter valued at approximately $11,662,000. Bank of New York Mellon Corp acquired a new position in Scholastic in the 2nd quarter valued at $11,417,000. Thompson Siegel & Walmsley LLC purchased a new position in Scholastic during the fourth quarter worth about $7,070,000. Finally, Hennessy Advisors Inc. acquired a new stake in shares of Scholastic in the 2nd quarter valued at approximately $10,442,000. Hedge funds and other institutional investors own 82.57% of the company’s stock.
Scholastic Stock Down 7.0%
The company has a debt-to-equity ratio of 0.10, a quick ratio of 0.78 and a current ratio of 1.23. The company has a market capitalization of $610.89 million, a PE ratio of 13.86, a price-to-earnings-growth ratio of 1.68 and a beta of 1.01. The firm’s 50-day simple moving average is $39.71 and its 200 day simple moving average is $40.45.
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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