Educational Development (NASDAQ:EDUC) Issues Quarterly Earnings Results

Educational Development (NASDAQ:EDUC) posted its earnings results on Thursday. The company reported $0.91 earnings per share (EPS) for the quarter, FiscalAI reports. The company had revenue of $7.01 million during the quarter. Educational Development had a negative return on equity of 11.37% and a negative net margin of 15.48%.

Here are the key takeaways from Educational Development’s conference call:

• The company closed the Hilti Complex sale, paid off all bank debt and ended the quarter with $0 owed to the bank, improving annual cash flow by roughly $1 million and removing prior bank restrictions that limited operations.
• Revenue and active brand partner counts fell sharply (Q3 revenue $7.0M vs $11.1M prior year; active partners 5,100 vs 12,400), leaving the business smaller and top-line pressured despite some signs of deeper engagement among remaining sellers.
• Reported Q3 and year-to-date profitability was driven by a $12.2M one-time gain from the building sale — excluding that gain the company reported operating losses (Q3 loss before taxes would be $1.6M; YTD loss $4.8M), highlighting underlying operating weakness.
• Management launched Gathered Goods (an in-house, higher-margin digital fundraising program), plans targeted reorders and new titles arriving late spring/summer, and is pursuing Gen Z-focused marketing and AI initiatives to drive scalable growth and reinvigorate the salesforce.

Educational Development Stock Performance

Shares of NASDAQ EDUC opened at $1.42 on Friday. The stock’s 50-day simple moving average is $1.32 and its 200-day simple moving average is $1.32. The firm has a market capitalization of $12.18 million, a PE ratio of -2.63 and a beta of 1.07. Educational Development has a fifty-two week low of $0.92 and a fifty-two week high of $1.91.

Wall Street Analyst Weigh In

Separately, Weiss Ratings reiterated a “sell (e+)” rating on shares of Educational Development in a report on Thursday, October 30th. One investment analyst has rated the stock with a Sell rating, According to MarketBeat, the stock presently has an average rating of “Sell”.

Institutional Inflows and Outflows

An institutional investor recently bought a new position in Educational Development stock. Citadel Advisors LLC purchased a new position in shares of Educational Development Corporation (NASDAQ:EDUC) during the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission. The firm purchased 26,852 shares of the company’s stock, valued at approximately $36,000. Citadel Advisors LLC owned approximately 0.31% of Educational Development at the end of the most recent reporting period. 19.60% of the stock is currently owned by hedge funds and other institutional investors.

Educational Development Company Profile

Educational Development Corporation, through its subsidiaries, engages in the direct marketing and digital retailing of educational and inspirational reading materials, including books, Bibles, devotionals, and related gift items. The company’s product portfolio extends to children’s literature, music, and home décor, targeting consumers in the faith-based and human-interest segments. Products are sold under proprietary brands across multiple online and catalog platforms.

Central to the company’s operations are its e-commerce websites and print catalogs, which support both retail and wholesale distribution channels.