Scholastic (NASDAQ:SCHL) Issues Earnings Results, Beats Estimates By $0.10 EPS

Scholastic (NASDAQ:SCHL) posted its earnings results on Thursday. The company reported $2.17 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.07 by $0.10, FiscalAI reports. The company had revenue of $551.10 million for the quarter, compared to analysts’ expectations of $556.72 million. Scholastic had a positive return on equity of 1.10% and a negative net margin of 0.65%.During the same period last year, the business posted $1.82 earnings per share.

Here are the key takeaways from Scholastic’s conference call:

• Scholastic closed two sale‑leaseback transactions unlocking $400+ million of net proceeds, the board raised the open‑market buyback authorization to $150 million, and management said returning capital to shareholders is the top priority with Free Cash Flow now expected to exceed $430 million.
• Second quarter results showed solid operating momentum: revenues of $551.1 million, Adjusted EBITDA rose 13% to $122.5 million, and adjusted diluted EPS increased to $2.57 from $1.82 a year ago.
• Children’s Book Publishing and Distribution remained a growth engine — Book Fairs reported higher fair counts, increased revenue per fair and lower cancellations, while trade titles (notably Dog Man and Hunger Games) delivered strong sales and franchise momentum.
• Scholastic Education faces near‑term funding headwinds (delayed federal disbursements and slower district buying) that drove lower segment revenue and pushed management to restructure and cut costs; the company also expects roughly $10 million of incremental tariff expense this fiscal year.

Scholastic Price Performance

Shares of NASDAQ SCHL opened at $28.77 on Friday. Scholastic has a twelve month low of $15.77 and a twelve month high of $31.86. The company has a current ratio of 1.16, a quick ratio of 0.65 and a debt-to-equity ratio of 0.37. The firm has a 50-day moving average of $28.65 and a two-hundred day moving average of $25.49. The company has a market capitalization of $723.28 million, a price-to-earnings ratio of -43.59 and a beta of 1.18.

Scholastic Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, March 16th. Shareholders of record on Friday, January 30th will be given a $0.20 dividend. The ex-dividend date is Friday, January 30th. This represents a $0.80 annualized dividend and a yield of 2.8%. Scholastic’s payout ratio is -121.21%.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on SCHL shares. Weiss Ratings restated a “sell (d+)” rating on shares of Scholastic in a research note on Tuesday. B. Riley started coverage on Scholastic in a research report on Wednesday, September 3rd. They set a “buy” rating and a $37.00 price target for the company. Zacks Research downgraded shares of Scholastic from a “hold” rating to a “strong sell” rating in a report on Monday, December 8th. Finally, Wall Street Zen downgraded shares of Scholastic from a “buy” rating to a “hold” rating in a research report on Friday, September 5th. One investment analyst has rated the stock with a Buy rating and two have assigned a Sell rating to the stock. According to MarketBeat, Scholastic has an average rating of “Reduce” and a consensus target price of $37.00.

Institutional Trading of Scholastic

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Tower Research Capital LLC TRC grew its position in Scholastic by 458.1% in the second quarter. Tower Research Capital LLC TRC now owns 3,159 shares of the company’s stock worth $66,000 after buying an additional 2,593 shares during the last quarter. BNP Paribas Financial Markets boosted its stake in shares of Scholastic by 127.4% during the 3rd quarter. BNP Paribas Financial Markets now owns 5,197 shares of the company’s stock worth $142,000 after acquiring an additional 2,912 shares in the last quarter. Inceptionr LLC bought a new stake in shares of Scholastic during the 3rd quarter worth $221,000. Mackenzie Financial Corp acquired a new position in shares of Scholastic in the 3rd quarter worth $237,000. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in shares of Scholastic by 4.8% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 13,851 shares of the company’s stock worth $262,000 after purchasing an additional 630 shares during the period. 82.57% of the stock is owned by institutional investors and hedge funds.

About Scholastic

Scholastic Corporation publishes and distributes children’s books worldwide. It operates in three segments: Children’s Book Publishing and Distribution, Education Solutions, and International. The Children’s Book Publishing and Distribution segment engages in publication and distribution of children’s print, digital, and audio books, as well as media and interactive products through its school reading events and trade channel; and operation of school-based book clubs and book fairs in the United States.