Publishing firm Scholastic beats Q4 revenue beats estimates on strength in children's book publishing

Scholastic

24/07/2025 21:16

Overview

Scholastic fiscal Q4 revenue rises 7%, beating analyst expectations

Adjusted EBITDA for fiscal Q4 exceeds estimates, reflecting effective cost management

Adjusted EPS for fiscal Q4 misses analyst expectations, impacted by school spending pressures

Shares of the publishing firm rose 6.7% in extended trading

Outlook

Scholastic targets fiscal 2026 Adjusted EBITDA of $160 mln to $170 mln

Company expects fiscal 2026 revenue growth of 2% to 4%

Scholastic anticipates fiscal Q1 seasonal loss similar to prior year

Company sees continued headwinds from school spending impacting results

Result Drivers

CHILDREN'S BOOK SUCCESS - Revenue growth driven by strong performance in Children's Book Publishing and Distribution, particularly the latest Hunger Games release

ENTERTAINMENT EXPANSION - Integration of 9 Story Media Group boosted Entertainment segment revenue

EDUCATION CHALLENGES - Education Solutions segment faced revenue decline due to macroeconomic pressures on school spending

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$508.30 mln
$494.60 mln (1 Analyst)
Q4 Adjusted EPS
Miss
$0.48
$0.85 (1 Analyst)
Q4 Adjusted EBITDA
Beat
$91.20 mln
$85.70 mln (1 Analyst)
Q4 Adjusted Operating Income
Beat
$63.40 mln
$62.60 mln (1 Analyst)
Q4 Operating Income
$53.50 mln
Q4 Pretax Profit
$48.90 mln


Analyst Coverage

Wall Street's median 12-month price target for Scholastic Corp is $35.00, about 35.5% above its July 23 closing price of $22.58

The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nPn33qHPRa

(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.)