Scholastic (NASDAQ:SCHL) Issues Quarterly Earnings Results

Scholastic (NASDAQ:SCHL) posted its quarterly earnings results on Thursday. The company reported ($0.15) EPS for the quarter, topping the consensus estimate of ($0.37) by $0.22, FiscalAI reports. Scholastic had a negative net margin of 0.21% and a positive return on equity of 2.66%. The business had revenue of $329.10 million during the quarter, compared to the consensus estimate 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 8.8%

Shares of NASDAQ:SCHL traded up $3.03 on Friday, hitting $37.27. 1,652,513 shares of the company’s stock were exchanged, compared to its average volume of 425,512. Scholastic has a 1-year low of $15.77 and a 1-year high of $38.94. The company has a market capitalization of $948.10 million, a PE ratio of -186.33 and a beta of 1.17. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.24 and a current ratio of 1.67. The firm’s 50-day moving average is $34.18 and its 200 day moving average is $30.35.

Scholastic Announces Dividend

The firm 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 dividend of $0.20 per share. This represents a $0.80 annualized dividend and a dividend yield of 2.1%. The ex-dividend date of this dividend is Thursday, April 30th. Scholastic’s dividend payout ratio is currently 32.26%.

Hedge Funds Weigh In On Scholastic

Several hedge funds have recently made changes to their positions in SCHL. Tower Research Capital LLC TRC lifted its position in Scholastic by 458.1% during the 2nd quarter. Tower Research Capital LLC TRC now owns 3,159 shares of the company’s stock worth $66,000 after acquiring an additional 2,593 shares during the period. BNP Paribas Financial Markets raised its stake in shares of Scholastic by 127.4% during the third quarter. BNP Paribas Financial Markets now owns 5,197 shares of the company’s stock worth $142,000 after purchasing an additional 2,912 shares during the last quarter. Bank of Montreal Can acquired a new stake in shares of Scholastic during the fourth quarter worth $211,000. State of Wyoming lifted its holdings in shares of Scholastic by 46.3% during the fourth quarter. State of Wyoming now owns 7,321 shares of the company’s stock worth $217,000 after purchasing an additional 2,317 shares during the period. Finally, Inceptionr LLC purchased a new position in Scholastic in the 3rd quarter valued at $221,000. Hedge funds and other institutional investors own 82.57% of the company’s stock.

Analyst Upgrades and Downgrades

Several research firms recently commented on SCHL. Zacks Research cut Scholastic from a “strong-buy” rating to a “hold” rating in a research note on Thursday, March 5th. B. Riley Financial lifted their price objective on Scholastic from $37.00 to $40.00 and gave the company a “neutral” rating in a research note on Friday. Finally, Weiss Ratings raised Scholastic from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Friday, January 30th. Three research analysts have rated the stock with a Hold rating, According to MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $40.00.

Trending Headlines about Scholastic

Here are the key news stories impacting Scholastic this week:

• Positive Sentiment: Scholastic beat consensus on EPS for Q3 (reported ($0.15) vs. consensus ($0.60)) and management highlighted progress on value-creation initiatives; earnings beat is a primary driver of the rally. PR Newswire: Q3 Results
• Positive Sentiment: The Board authorized a modified Dutch?auction tender offer to repurchase up to $200 million of stock (expected purchase price $36–$40), part of a $300M repurchase plan — a large buyback that reduces float and boosts shareholder return expectations. PR Newswire: $200M Tender Offer
• Positive Sentiment: Board declared a quarterly cash dividend of $0.20 per share (payable June 15), adding to shareholder yield alongside the buyback. PR Newswire: Dividend
• Neutral Sentiment: B. Riley raised its price target from $37 to $40 but kept a “neutral” rating — the higher target supports upside but the maintained rating tempers the bullish signal. TickerReport / Benzinga: PT Raise
• Neutral Sentiment: Analyst commentary and a Seeking Alpha piece point to a reassessment of Scholastic’s turnaround progress (upgrades/positive narratives), which could sustain momentum but depend on execution. Seeking Alpha: Rating Upgrade
• Negative Sentiment: Revenue slightly missed estimates ($329.1M vs. ~$331.5M) and the company still reported a small net loss and negative margin — these fundamentals temper the outlook if topline weakness persists. Zacks: Revenue Miss

About Scholastic

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.