Scholastic (NASDAQ:SCHL) Posts Quarterly Earnings Results

Scholastic (NASDAQ:SCHL) issued its earnings results on Thursday. The company reported $2.19 earnings per share for the quarter, topping the consensus estimate of $2.16 by $0.03, FiscalAI reports. The business had revenue of $476.10 million during the quarter, compared to analysts’ expectations of $517.06 million. Scholastic had a return on equity of 5.08% and a net margin of 3.58%.During the same period in the prior year, the business earned $0.59 EPS.

Here are the key takeaways from Scholastic’s conference call:

• Scholastic delivered improved profitability in fiscal 2026 despite a 3% revenue decline, with adjusted operating income rising to $47.1 million and adjusted EBITDA up 4% to $151.5 million, reflecting operating leverage and disciplined cost control.
• Book Fairs remained a standout growth engine, with fiscal 2026 revenue up 5% and more than 103,000 fairs held. Management said higher fair count, better revenue per fair, stronger eWallet adoption, and improved product mix should support further growth in fiscal 2027.
• Education continued to face pressure from volatile school and district funding, with revenue down 14% for the year and profitability near breakeven. The company expects improvement in fiscal 2027, but management still sees the segment as dependent on a second-half stabilization.
• Capital returns accelerated materially after sale-leaseback transactions generated over $400 million of net proceeds. Scholastic returned over $285 million to shareholders in fiscal 2026 and raised its quarterly dividend by 25% for fiscal 2027.
• Management is guiding to fiscal 2027 growth, including 2%-4% revenue growth and $135 million-$145 million of adjusted EBITDA, with strength expected from book fairs, trade publishing, entertainment, and improving education trends.

Scholastic Price Performance

SCHL opened at $43.15 on Friday. The firm has a market capitalization of $938.08 million, a PE ratio of 18.44, a price-to-earnings-growth ratio of 1.48 and a beta of 0.99. The business’s 50-day moving average is $43.78 and its two-hundred day moving average is $38.91. Scholastic has a 1 year low of $22.68 and a 1 year high of $48.07.

Scholastic Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Monday, August 31st will be paid a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 2.3%. This is a boost from Scholastic’s previous quarterly dividend of $0.20. The ex-dividend date is Monday, August 31st. Scholastic’s payout ratio is presently 32.26%.

Analysts Set New Price Targets

A number of analysts recently weighed in on the stock. Wall Street Zen lowered shares of Scholastic from a “buy” rating to a “hold” rating in a research note on Saturday, April 25th. Zacks Research downgraded shares of Scholastic from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, May 19th. Weiss Ratings restated a “hold (c+)” rating on shares of Scholastic in a report on Thursday, June 18th. Finally, B. Riley Financial upped their price target on shares of Scholastic from $40.00 to $42.00 and gave the stock a “neutral” rating in a research report on Wednesday, July 8th. Three research analysts have rated the stock with a Hold rating, According to MarketBeat, Scholastic presently has an average rating of “Hold” and a consensus target price of $42.00.

Key Scholastic News

Here are the key news stories impacting Scholastic this week:

• Positive Sentiment: Scholastic raised its quarterly dividend to $0.25 per share, a 25% increase from $0.20, signaling confidence in cash flow and returning more capital to shareholders.
• Positive Sentiment: The company projected fiscal 2027 adjusted EBITDA of $135 million to $145 million and revenue growth of 2% to 4%, indicating a return to growth after a challenging year. Scholastic projects 2%-4% revenue growth and $135M-$145M adjusted EBITDA in fiscal 2027, following 25% dividend increase
• Positive Sentiment: Fiscal 2026 adjusted EBITDA came in at $151.5 million, up 4% and in line with guidance, showing operating resilience despite a tougher environment. Scholastic Reports Fourth Quarter and Fiscal 2026 Results
• Neutral Sentiment: For the quarter, Scholastic reported earnings of $2.19 per share, above estimates of $2.16, but revenue of $476.1 million missed expectations of $517.1 million, leaving investors focused on the sales shortfall. Scholastic: Fiscal Q4 Earnings Snapshot
• Neutral Sentiment: Management highlighted a multi-year transformation and said fiscal 2026 showed the earnings power of a more focused Scholastic, but investors will likely wait for evidence that revenue growth is improving. Scholastic Corp (SCHL) Q4 2026 Earnings Call Highlights: Navigating Challenges with Strategic …
• Negative Sentiment: Scholastic’s lower-than-expected revenue and cautious outlook relative to analyst revenue expectations suggest near-term pressure on the stock despite the earnings beat.

Institutional Trading of Scholastic

A number of institutional investors have recently modified their holdings of SCHL. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in shares of Scholastic by 4.8% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 13,851 shares of the company’s stock worth $262,000 after buying an additional 630 shares during the last quarter. Deutsche Bank AG lifted its position in Scholastic by 4.1% during the fourth quarter. Deutsche Bank AG now owns 20,829 shares of the company’s stock valued at $617,000 after acquiring an additional 824 shares during the last quarter. Public Sector Pension Investment Board boosted its stake in Scholastic by 1.9% in the second quarter. Public Sector Pension Investment Board now owns 80,195 shares of the company’s stock valued at $1,682,000 after acquiring an additional 1,509 shares in the last quarter. Russell Investments Group Ltd. boosted its stake in Scholastic by 7.0% in the fourth quarter. Russell Investments Group Ltd. now owns 29,144 shares of the company’s stock valued at $864,000 after acquiring an additional 1,913 shares in the last quarter. Finally, Mackenzie Financial Corp grew its holdings in Scholastic by 23.4% in the fourth quarter. Mackenzie Financial Corp now owns 10,691 shares of the company’s stock worth $315,000 after purchasing an additional 2,024 shares during the last quarter. 82.57% of the stock is currently owned by institutional investors.

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.