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

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

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 Up 2.5%

SCHL stock traded up $0.85 during midday trading on Thursday, hitting $34.24. The company’s stock had a trading volume of 463,993 shares, compared to its average volume of 404,860. The company’s fifty day moving average price is $34.15 and its 200 day moving average price is $30.32. Scholastic has a twelve month low of $15.77 and a twelve month high of $36.24. The company has a debt-to-equity ratio of 0.30, a current ratio of 1.67 and a quick ratio of 1.24. The stock has a market capitalization of $871.07 million, a P/E ratio of -171.20 and a beta of 1.17.

Scholastic Announces Dividend

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

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

Analyst Ratings Changes

Several equities research analysts have recently issued reports on SCHL shares. Weiss Ratings raised shares of Scholastic from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Friday, January 30th. Zacks Research lowered shares of Scholastic from a “strong-buy” rating to a “hold” rating in a research note on Thursday, March 5th. Finally, B. Riley Financial reissued a “neutral” rating and issued a $37.00 price target on shares of Scholastic in a research note on Monday, March 9th. Three research analysts have rated the stock with a Hold rating, According to data from MarketBeat, the company presently has an average rating of “Hold” and an average price target of $37.00.

Institutional Trading of Scholastic

Several institutional investors and hedge funds have recently bought and sold shares of SCHL. AQR Capital Management LLC boosted its position in Scholastic by 160.5% during the first quarter. AQR Capital Management LLC now owns 157,436 shares of the company’s stock valued at $2,972,000 after purchasing an additional 96,998 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in shares of Scholastic by 4.8% during the 1st 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 in the last quarter. Empowered Funds LLC boosted its holdings in shares of Scholastic by 4.2% in the 1st quarter. Empowered Funds LLC now owns 164,178 shares of the company’s stock valued at $3,100,000 after buying an additional 6,628 shares during the last quarter. Jane Street Group LLC grew its stake in shares of Scholastic by 457.8% in the first quarter. Jane Street Group LLC now owns 81,390 shares of the company’s stock valued at $1,537,000 after buying an additional 66,798 shares in the last quarter. Finally, Russell Investments Group Ltd. increased its holdings in Scholastic by 16.8% during the second quarter. Russell Investments Group Ltd. now owns 23,440 shares of the company’s stock worth $492,000 after buying an additional 3,365 shares during the last quarter. Institutional investors own 82.57% of the company’s stock.

Scholastic Company Profile

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.