Scholastic (NASDAQ:SCHL) Issues Quarterly Earnings Results

Scholastic (NASDAQ:SCHL) announced its earnings results on Thursday. The company reported ($0.15) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.60) by $0.45, FiscalAI reports. Scholastic had a negative net margin of 0.21% and a positive return on equity of 2.66%. The company 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 Trading Up 2.5%

Shares of SCHL stock traded up $0.85 during trading hours on Thursday, reaching $34.24. The company had a trading volume of 463,993 shares, compared to its average volume of 404,860. The company has a 50 day moving average of $34.15 and a 200 day moving average of $30.32. The firm has a market cap of $871.07 million, a price-to-earnings ratio of -171.20 and a beta of 1.17. The company has a debt-to-equity ratio of 0.30, a current ratio of 1.67 and a quick ratio of 1.24. Scholastic has a 1-year low of $15.77 and a 1-year high of $36.24.

Scholastic Announces Dividend

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

Institutional Trading of Scholastic

A number of institutional investors and hedge funds have recently modified their holdings of SCHL. Invesco Ltd. boosted its stake in Scholastic by 57.2% during the 4th quarter. Invesco Ltd. now owns 424,973 shares of the company’s stock worth $12,592,000 after acquiring an additional 154,668 shares during the last quarter. Mackenzie Financial Corp increased its stake in Scholastic by 23.4% in the fourth quarter. Mackenzie Financial Corp now owns 10,691 shares of the company’s stock valued at $315,000 after purchasing an additional 2,024 shares in the last quarter. Empowered Funds LLC boosted its position in shares of Scholastic by 9.4% during the fourth quarter. Empowered Funds LLC now owns 124,459 shares of the company’s stock worth $3,688,000 after purchasing an additional 10,729 shares in the last quarter. XTX Topco Ltd acquired a new position in shares of Scholastic in the 4th quarter valued at $1,369,000. Finally, Quadrature Capital Ltd bought a new stake in shares of Scholastic in the 4th quarter valued at $807,000. 82.57% of the stock is owned by institutional investors.

Scholastic News Roundup

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

Wall Street Analysts Forecast Growth

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

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.