Overview
Scholastic fiscal Q1 revenue falls 5%, missing analyst expectations, per LSEG data
Adjusted EPS misses estimates, while adjusted EBITDA beats expectations, per LSEG data
Co affirms fiscal 2026 guidance
Outlook
Scholastic affirms fiscal 2026 guidance, citing strategic initiatives and growth potential
Company sees strong fall book fair bookings, exceeding prior year
Scholastic faces challenges in Education Solutions due to volatile funding
Company exploring sale-leaseback transactions to enhance liquidity
Result Drivers
CHILDREN'S BOOKS - Revenue in the Children's Book Publishing and Distribution segment rose 4%, driven by increased book fair engagement
EDUCATION SOLUTIONS - Revenue fell 28% due to funding uncertainties impacting school purchases
ENTERTAINMENT - Revenue decreased 18% due to production delays
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Miss
$225.60 mln
$238.90 mln (2 Analysts)
Q1 Adjusted EPS
Miss
-$2.52
-$2.44 (2 Analysts)
Q1 EPS
-$2.83
Q1 Adjusted EBITDA
Beat
-$55.70 mln
-$62.80 mln (2 Analysts)
Q1 Adjusted Operating Income
Beat
-$81.90 mln
-$83 mln (2 Analysts)
Q1 Operating Income
-$92.20 mln
Q1 Pretax Profit
-$97 mln
Analyst Coverage
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the consumer publishing peer group is "hold."
Wall Street's median 12-month price target for Scholastic Corp is $36.00, about 24.4% above its September 17 closing price of $27.21
Press Release: ID:nPn4F2NQBa
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)