Scholastic (NASDAQ:SCHL) Announces Earnings Results, Misses Estimates By $0.21 EPS

Key Points

• Scholastic missed quarterly expectations: The company reported EPS of -$3.63, $0.21 below consensus, while revenue of $216.8 million also fell short of the $224.69 million estimate.
• Shares declined 1.5% to $34.83 following the results. Analysts maintain a consensus “Hold” rating with an average price target of $42.
• Scholastic declared a quarterly dividend of $0.25 per share, equivalent to a $1.00 annualized payout and a 2.9% yield; insiders have sold nearly 295,000 shares worth approximately $11.7 million over the past three months.

Scholastic (NASDAQ:SCHL - Get Free Report) issued its earnings results on Thursday. The company reported ($3.63) EPS for the quarter, missing the consensus estimate of ($3.42) by ($0.21), FiscalAI reports. Scholastic had a net margin of 3.58% and a return on equity of 5.29%. The firm had revenue of $216.80 million during the quarter, compared to analyst estimates of $224.69 million.

Scholastic Stock Down 1.5%

NASDAQ SCHL traded down $0.53 on Thursday, reaching $34.83. The company had a trading volume of 644,103 shares, compared to its average volume of 439,863. The company's fifty day moving average is $39.94 and its 200 day moving average is $40.46. The stock has a market capitalization of $656.89 million, a P/E ratio of 14.88, a P/E/G ratio of 1.68 and a beta of 1.01. The company has a quick ratio of 0.78, a current ratio of 1.23 and a debt-to-equity ratio of 0.10. Scholastic has a 52-week low of $25.91 and a 52-week high of $48.07.

Scholastic Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, December 15th. Investors of record on Friday, October 30th will be given a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date of this dividend is Friday, October 30th. Scholastic's dividend payout ratio is presently 42.74%.

Insider Activity at Scholastic

In related news, Director Kaya Henderson sold 3,250 shares of the firm's stock in a transaction dated Thursday, August 6th. The shares were sold at an average price of $40.25, for a total transaction of $130,812.50. Following the completion of the sale, the director owned 7,113 shares in the company, valued at approximately $286,298.25. This trade represents a 31.36% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Andres A. Alonso sold 2,112 shares of the firm's stock in a transaction that occurred on Wednesday, August 26th. The stock was sold at an average price of $40.28, for a total transaction of $85,071.36. Following the sale, the director owned 21,189 shares of the company's stock, valued at approximately $853,492.92. The trade was a 9.06% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 294,986 shares of company stock valued at $11,731,334. 12.77% of the stock is owned by insiders.

Analysts Set New Price Targets

SCHL has been the subject of several recent analyst reports. Weiss Ratings upgraded Scholastic from a "hold (c)" rating to a "hold (c+)" rating in a research report on Friday, September 11th. B. Riley Financial boosted their price objective on shares of Scholastic from $40.00 to $42.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 8th. Finally, Zacks Research raised shares of Scholastic from a "strong sell" rating to a "hold" rating in a research note on Tuesday. Three research analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $42.00.

About Scholastic

Scholastic Corporation is a global children's publishing, education and media company. Founded in 1920 by M. R. Robinson, the company develops and distributes books, classroom materials, digital learning resources and educational media for children, families, teachers and schools.

Its publishing portfolio includes original and licensed children's books, series and educational titles, while its education business provides classroom magazines, supplemental curriculum materials, professional learning resources and digital platforms.

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