Scholastic (NASDAQ:SCHL) Posts Quarterly Earnings Results, Beats Estimates By $0.45 EPS

by · The Cerbat Gem

Scholastic (NASDAQ:SCHL – Get Free Report) posted its quarterly earnings results on Thursday. The company reported ($0.15) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.60) by $0.45, FiscalAI reports. The business had revenue of $329.10 million for the quarter, compared to analysts’ expectations of $331.53 million. Scholastic had a positive return on equity of 2.66% and a negative net margin of 0.21%.

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

  • Scholastic completed sale-leaseback transactions that generated over $400 million of net proceeds, repaid its revolver, ended the quarter with net cash of $90.6 million, and the board authorized a new $300 million repurchase program (including a $200M Dutch auction at $36–$40), which could repurchase ~25% of shares if fully subscribed.
  • The company reaffirmed fiscal 2026 guidance, targeting adjusted EBITDA of $146M–$156M and free cash flow above $430M, despite third‑quarter seasonality and year‑to‑date softness in education.
  • Children’s Book Group momentum remains strong: Book Fairs showed higher fair counts and revenue per fair, eWallet adoption and strategic merchandising improved results, and trade franchises (Dav Pilkey, Hunger Games, Wings of Fire) continue to drive robust consumer demand.
  • Scholastic Education is stabilizing—revenues fell ~2% in Q3 but profitability improved after go‑to‑market changes and product alignment to the science of reading, with management targeting a return to growth in fiscal 2027.
  • The sale‑leaseback reduces near‑term adjusted EBITDA (about a $14M partial‑year impact) and increased rent expense and eliminated prior rental income, contributing to an adjusted operating loss in the quarter and higher cash taxes that materially affected operating cash flow.

Scholastic Stock Performance

Shares of Scholastic stock traded up $0.85 on Thursday, hitting $34.24. The stock had a trading volume of 463,993 shares, compared to its average volume of 408,002. The company has a quick ratio of 1.24, a current ratio of 1.67 and a debt-to-equity ratio of 0.30. The business’s 50 day moving average is $34.15 and its two-hundred day moving average is $30.32. Scholastic has a twelve month low of $15.77 and a twelve month high of $36.24. The stock has a market cap of $871.07 million, a price-to-earnings ratio of 38.38 and a beta of 1.17.

Scholastic Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, June 15th. Stockholders of record on Thursday, April 30th will be given a $0.20 dividend. The ex-dividend date of this dividend is Thursday, April 30th. This represents a $0.80 annualized dividend and a dividend yield of 2.3%. Scholastic’s dividend payout ratio is presently -400.00%.

Analysts Set New Price Targets

SCHL has been the subject of a number of analyst reports. Weiss Ratings raised shares of Scholastic from a “sell (d+)” rating to a “hold (c-)” rating in a report on Friday, January 30th. B. Riley Financial reissued a “neutral” rating and set a $37.00 price target on shares of Scholastic in a research report on Monday, March 9th. Finally, Zacks Research cut Scholastic from a “strong-buy” rating to a “hold” rating in a research note on Thursday, March 5th. Three investment analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, Scholastic presently has a consensus rating of “Hold” and a consensus price target of $37.00.

Check Out Our Latest Research Report on Scholastic

Hedge Funds Weigh In On Scholastic

Hedge funds have recently added to or reduced their stakes in the stock. Tower Research Capital LLC TRC raised its stake in Scholastic by 458.1% in the second quarter. Tower Research Capital LLC TRC now owns 3,159 shares of the company’s stock valued at $66,000 after purchasing an additional 2,593 shares in the last quarter. BNP Paribas Financial Markets lifted its holdings 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 during the period. Bank of Montreal Can acquired a new stake in shares of Scholastic during the 4th quarter worth approximately $211,000. State of Wyoming raised its position in Scholastic by 46.3% during the fourth quarter. State of Wyoming now owns 7,321 shares of the company’s stock valued at $217,000 after purchasing an additional 2,317 shares in the last quarter. Finally, Inceptionr LLC acquired a new stake in shares of Scholastic in the 3rd quarter valued at approximately $221,000. Institutional investors own 82.57% of the company’s stock.

Key Scholastic News

Here are the key news stories impacting Scholastic this week:

  • Positive Sentiment: Board authorized a modified Dutch‑auction tender offer to repurchase up to $200 million of stock (expected price range $36–$40/share), part of a $300 million total buyback authorization — a clear near‑term catalyst supporting the share price. Scholastic Announces Intent to Repurchase Up to $200 Million
  • Positive Sentiment: Q3 EPS came in better than expectations (loss of $0.15 vs. Zacks consensus -$0.37), which reduces near‑term earnings concern and likely helped investor sentiment. Scholastic Reports Q3 Loss, Misses Revenue Estimates
  • Positive Sentiment: Board declared a quarterly cash dividend of $0.20/share (annualized yield ~2.4%), reinforcing shareholder return policy. Scholastic Announces Fourth Quarter Dividend
  • Neutral Sentiment: Management highlighted balance‑sheet moves (over $400M net proceeds from sale‑leasebacks) and set a long‑term net leverage target of 2.0–2.5x adjusted EBITDA — indicates disciplined capital allocation but implies continued focus on debt/credit metrics. Scholastic Reports Fiscal 2026 Third Quarter Results
  • Negative Sentiment: Revenue missed estimates and Children’s Book sales were down, which press pieces flagged as the main drag on top‑line performance and a reason for continued margin pressure. Scholastic Beats Q3 EPS But Misses on Revenue

About Scholastic

(Get Free Report)

Scholastic Corporation (NASDAQ: SCHL) is a global company dedicated to children’s publishing, education technology and distribution services. The company’s core business encompasses three primary segments: Children’s Book Publishing and Distribution, Education Technology, and International operations. Through its publishing arm, Scholastic produces and distributes a wide range of children’s books, novels, nonfiction titles and classroom magazines under well-known imprints such as Scholastic Press, Graphix and Chicken House.

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