Educational Development (NASDAQ:EDUC – Get Free Report) released its quarterly earnings results on Wednesday. The company reported ($0.19) earnings per share for the quarter, missing the consensus estimate of $0.41 by ($0.60), Zacks reports. Educational Development had a negative return on equity of 18.34% and a net margin of 8.60%. The firm had revenue of $4.07 million during the quarter, compared to the consensus estimate of $53.10 million.
Here are the key takeaways from Educational Development’s conference call:
- Revenue declined 11% year over year to $4.1 million, substantially better than management’s internal expectation of a 35% decline. Executives attributed the improvement to replenished bestsellers and the return of new product introductions.
- Active Brand Partners increased approximately 19% from 4,300 at the start of fiscal 2027 to 5,100 at the end of August, with management expecting seasonal growth during the stronger fall selling period. However, the count remains below the prior year’s 5,800 level.
- The company remained unprofitable, reporting a $1.6 million net loss, or $0.19 per share, compared with a $1.3 million loss, or $0.15 per share, a year earlier. Cash declined modestly to approximately $1.1 million, while first-half cash generation from reducing inventory largely offset operating losses.
- Management expects approximately $1.2 million in fiscal-year operating expense savings, including $15,000 per month from leaving an outside warehouse. New e-commerce features, AI-assisted product discovery, and a more consistent product-release schedule are intended to support Brand Partner productivity and future growth.
Educational Development Price Performance
Shares of NASDAQ EDUC opened at $1.09 on Friday. Educational Development has a one year low of $1.07 and a one year high of $1.73. The firm’s 50 day simple moving average is $1.33 and its two-hundred day simple moving average is $1.40. The stock has a market capitalization of $9.29 million, a P/E ratio of 5.74 and a beta of 1.09.
Analyst Upgrades and Downgrades
Separately, Weiss Ratings cut Educational Development from a “hold (c-)” rating to a “sell (d+)” rating in a report on Thursday. One equities research analyst has rated the stock with a Sell rating. According to MarketBeat, Educational Development has a consensus rating of “Sell”.
Read Our Latest Research Report on Educational Development
About Educational Development
Educational Development Corporation (NASDAQ: EDUC) is a U.S.-based publisher and distributor of children’s books and educational products. Headquartered in Tulsa, Oklahoma, the company serves families, educators and other customers through a combination of publishing, wholesale distribution and direct selling.
EDC’s business includes the Usborne Books & More direct-selling operation, which distributes children’s books through a network of independent consultants. Its product range includes picture books, early-learning titles, activity books, fiction and nonfiction for children, along with selected educational products, games and related items.
The company also operates Kane Miller, an imprint focused on publishing and distributing children’s books, including titles translated or licensed from international publishers.
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