Scholastic (NASDAQ:SCHL) Releases Earnings Results, Misses Estimates By $0.21 EPS

Scholastic (NASDAQ:SCHL) released its earnings results on Thursday. The company reported ($3.63) earnings per share for the quarter, missing analysts’ consensus estimates of ($3.42) by ($0.21), FiscalAI reports. 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 3.60% and a return on equity of 4.71%.

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 Performance

NASDAQ:SCHL opened at $32.35 on Friday. The company has a debt-to-equity ratio of 0.10, a quick ratio of 0.78 and a current ratio of 1.23. Scholastic has a 52-week low of $26.00 and a 52-week high of $48.07. The firm has a market cap of $610.12 million, a price-to-earnings ratio of 23.11, a PEG ratio of 1.66 and a beta of 1.01. The business’s fifty day moving average is $39.42 and its 200 day moving average is $40.39.

Scholastic Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 15th. Investors of record on Friday, October 30th will be paid a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 3.1%. The ex-dividend date is Friday, October 30th. Scholastic’s payout ratio is presently 42.74%.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on SCHL shares. Zacks Research upgraded Scholastic from a “strong sell” rating to a “hold” rating in a research note on Tuesday. B. Riley Financial raised their target price on Scholastic from $40.00 to $42.00 and gave the stock a “neutral” rating in a research report on Wednesday, July 8th. Finally, Weiss Ratings upgraded Scholastic from a “hold (c)” rating to a “hold (c+)” rating in a research note on Friday, September 11th. Three research analysts have rated the stock with a Hold rating, Based on data from MarketBeat.com, Scholastic currently has an average rating of “Hold” and an average price target of $42.00.

Insiders Place Their Bets

In other news, Director Andres A. Alonso sold 2,112 shares of the company’s stock in a transaction dated Wednesday, August 26th. The stock was sold at an average price of $40.28, for a total transaction of $85,071.36. Following the sale, the director directly owned 21,189 shares in the company, valued at $853,492.92. This represents a 9.06% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, EVP Iole Lucchese sold 289,624 shares of the stock in a transaction dated Wednesday, August 26th. The stock was sold at an average price of $39.76, for a total transaction of $11,515,450.24. Following the completion of the sale, the executive vice president directly owned 289,623 shares in the company, valued at approximately $11,515,410.48. The trade was a 50.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 294,986 shares of company stock worth $11,731,334 in the last quarter. 12.77% of the stock is owned by company insiders.

Scholastic News Summary

Here are the key news stories impacting Scholastic this week:

• Positive Sentiment: Scholastic reaffirmed its fiscal 2027 outlook, calling for approximately 2%–4% revenue growth, adjusted EBITDA of $135 million–$145 million and free cash flow of $35 million–$40 million. Management expects the fall Book Fairs season to support activity later in the year. Scholastic fiscal 2027 outlook
• Positive Sentiment: The company returned approximately $29.6 million to investors through share repurchases and dividends during the quarter. An update to its previously announced equity buyback plan also provided ongoing support for the stock. Scholastic equity buyback update
• Neutral Sentiment: Zacks upgraded Scholastic from “strong sell” to “hold,” suggesting reduced bearish conviction but not a bullish recommendation.
• Negative Sentiment: Fiscal first-quarter revenue fell 4% year over year to $216.8 million, below analysts’ $224.7 million estimate. The company reported a loss of $3.63 per share, missing the expected $3.42 loss; the loss also widened from $2.52 per share a year earlier. Scholastic fiscal 2027 first-quarter results
• Negative Sentiment: Weakness was concentrated in Children’s Book Publishing and Distribution and Education, while operating cash use increased to $94.6 million from $81.8 million in the prior-year quarter. These results raised concerns about near-term execution despite the maintained annual guidance. Scholastic downbeat first-quarter results

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.