Sidoti Issues Optimistic Outlook for Scholastic Earnings

Scholastic Corporation (NASDAQ:SCHL) – Equities researchers at Sidoti upped their Q2 2027 earnings per share (EPS) estimates for shares of Scholastic in a research note issued to investors on Friday, September 25th. Sidoti analyst B. Mccarthy now forecasts that the company will post earnings of $3.43 per share for the quarter, up from their previous forecast of $3.29. The consensus estimate for Scholastic’s current full-year earnings is $1.41 per share. Sidoti also issued estimates for Scholastic’s Q4 2027 earnings at $2.40 EPS and Q2 2028 earnings at $4.07 EPS.

A number of other analysts also recently issued reports on SCHL. Zacks Research raised Scholastic from a “strong sell” rating to a “hold” rating in a research report on Tuesday, September 22nd. B. Riley Financial decreased their target price on shares of Scholastic from $42.00 to $35.00 and set a “neutral” rating on the stock in a research report on Monday. Finally, Weiss Ratings lowered shares of Scholastic from a “hold (c+)” rating to a “hold (c-)” rating in a research note on Monday. Three analysts have rated the stock with a Hold rating, According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $35.00.

Scholastic Stock Performance

Shares of Scholastic stock opened at $34.80 on Monday. Scholastic has a 52 week low of $26.38 and a 52 week high of $48.07. The business’s fifty day simple moving average is $38.92 and its 200-day simple moving average is $40.43. The firm has a market cap of $656.33 million, a PE ratio of 24.86, a price-to-earnings-growth ratio of 1.83 and a beta of 1.01. The company has a quick ratio of 0.78, a current ratio of 1.23 and a debt-to-equity ratio of 0.10.

Scholastic (NASDAQ:SCHL) last issued its quarterly earnings data on Thursday, September 24th. The company reported ($3.63) earnings per share for the quarter, missing the consensus estimate of ($3.42) by ($0.21). The business had revenue of $216.80 million during the quarter, compared to analysts’ expectations of $224.69 million. Scholastic had a return on equity of 4.71% and a net margin of 3.60%.

Scholastic Announces Dividend

The company also recently announced 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. The ex-dividend date of this dividend is Friday, October 30th. This represents a $1.00 annualized dividend and a yield of 2.9%. Scholastic’s dividend payout ratio is presently 71.43%.

Insider Buying and Selling

In other news, EVP Iole Lucchese sold 289,624 shares of the stock in a transaction dated Wednesday, August 26th. The shares were sold at an average price of $39.76, for a total transaction of $11,515,450.24. Following the sale, the executive vice president owned 289,623 shares of the company’s stock, valued at approximately $11,515,410.48. This represents a 50.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Andres A. Alonso sold 2,112 shares of the 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 position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 294,986 shares of company stock valued at $11,731,334. Corporate insiders own 12.77% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in SCHL. BlackRock Inc. purchased a new stake in Scholastic during the 2nd quarter worth approximately $120,724,000. Brandes Investment Partners LP boosted its holdings in Scholastic by 6.6% in the fourth quarter. Brandes Investment Partners LP now owns 279,686 shares of the company’s stock valued at $8,287,000 after purchasing an additional 17,407 shares during the period. Bank of New York Mellon Corp boosted its holdings in Scholastic by 4.2% in the first quarter. Bank of New York Mellon Corp now owns 266,082 shares of the company’s stock valued at $10,393,000 after purchasing an additional 10,636 shares during the period. Empowered Funds LLC acquired a new position in Scholastic during the 2nd quarter worth $11,662,000. Finally, Thompson Siegel & Walmsley LLC purchased a new stake in Scholastic during the 4th quarter worth about $7,070,000. Institutional investors and hedge funds own 82.57% of the company’s stock.

Key Stories Impacting Scholastic

Here are the key news stories impacting Scholastic this week:

• Positive Sentiment: Strategic acquisition supports growth outlook: Scholastic agreed to acquire Cottage Door Press for approximately $71 million, subject to customary adjustments. The deal expands Scholastic’s early-childhood publishing portfolio and adds opportunities across formats and distribution channels. Scholastic to Acquire Cottage Door Press
• Positive Sentiment: Investors reacted positively to the transaction: Reports said SCHL shares climbed in premarket trading after the acquisition announcement, suggesting the market views Cottage Door Press as a potentially valuable growth asset. Scholastic To Buy Cottage Door Press
• Neutral Sentiment: Management and analysts focused on operating trends: Discussion of the earnings call highlighted book-fair performance, franchise activity and questions around the company’s outlook. These factors could determine whether the acquisition and publishing strategy translate into stronger results. The 5 most interesting analyst questions from Scholastic’s Q3 earnings call
• Negative Sentiment: Recent results and education headwinds remain weighing on sentiment: Scholastic’s latest quarter produced a larger-than-expected loss and revenue below analyst forecasts. Coverage also cited pressure from education-related conditions, book-fair trends and franchise activity. SCHL Q3 Deep Dive
• Negative Sentiment: Analysts reduced longer-term earnings forecasts: Sidoti lowered its FY2027 EPS estimate to $1.29 from $1.46 and trimmed several quarterly forecasts, reinforcing concerns about the pace of earnings recovery. B. Riley also cut its price target to $35 and maintained a neutral rating. Scholastic analyst estimates

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.