Scholastic Stock Earnings Estimates Decreased by Sidoti

Key Points

• Sidoti lowered Scholastic’s earnings outlook, cutting its Q3 fiscal 2027 EPS estimate to a loss of $0.88 from $0.84 and forecasting $1.29 EPS for fiscal 2027, down from $1.46.
• Scholastic’s latest quarter missed expectations, with a loss of $3.63 per share versus the $3.42 consensus and revenue of $216.8 million versus $224.69 million expected.
• Analyst sentiment remains cautious: B. Riley reduced its price target to $35, while the stock carries a consensus “Hold” rating. Scholastic also declared a quarterly dividend of $0.25 per share, yielding about 3% annually.

Scholastic Corporation (NASDAQ:SCHL - Free Report) - Stock analysts at Sidoti cut their Q3 2027 EPS estimates for shares of Scholastic in a research note issued to investors on Friday, September 25th. Sidoti analyst B. Mccarthy now forecasts that the company will post earnings per share of ($0.88) for the quarter, down from their prior forecast of ($0.84). The consensus estimate for Scholastic's current full-year earnings is $1.50 per share. Sidoti also issued estimates for Scholastic's FY2027 earnings at $1.29 EPS, Q1 2028 earnings at ($3.31) EPS, Q3 2028 earnings at ($0.72) EPS and Q4 2028 earnings at $2.81 EPS.

Scholastic (NASDAQ:SCHL - Get Free Report) last released its quarterly earnings results on Thursday, September 24th. The company reported ($3.63) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($3.42) by ($0.21). The firm had revenue of $216.80 million for the quarter, compared to the consensus estimate of $224.69 million. Scholastic had a net margin of 3.60% and a return on equity of 4.71%.

Several other analysts also recently commented on the stock. Zacks Research upgraded shares of Scholastic from a "strong sell" rating to a "hold" rating in a research report on Tuesday, September 22nd. B. Riley Financial lowered their target price on shares of Scholastic from $42.00 to $35.00 and set a "neutral" rating on the stock in a research note on Monday. Finally, Weiss Ratings raised shares of Scholastic from a "hold (c)" rating to a "hold (c+)" rating in a report on Friday, September 11th. Three investment analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $35.00.

Scholastic Stock Performance

NASDAQ:SCHL opened at $33.58 on Tuesday. The company has a debt-to-equity ratio of 0.10, a quick ratio of 0.78 and a current ratio of 1.23. The stock has a 50-day simple moving average of $39.16 and a two-hundred day simple moving average of $40.42. The firm has a market capitalization of $633.32 million, a PE ratio of 23.99, a P/E/G ratio of 1.66 and a beta of 1.01. Scholastic has a 52-week low of $26.38 and a 52-week high of $48.07.

Hedge Funds Weigh In On Scholastic

Hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. purchased a new position in Scholastic in the second quarter valued at about $120,724,000. Brandes Investment Partners LP boosted its holdings in shares of Scholastic by 6.6% in the 4th quarter. Brandes Investment Partners LP now owns 279,686 shares of the company's stock valued at $8,287,000 after buying an additional 17,407 shares in the last quarter. Bank of New York Mellon Corp boosted its holdings in shares of Scholastic by 4.2% in the 1st quarter. Bank of New York Mellon Corp now owns 266,082 shares of the company's stock valued at $10,393,000 after buying an additional 10,636 shares in the last quarter. Empowered Funds LLC purchased a new position in shares of Scholastic in the 2nd quarter worth approximately $11,662,000. Finally, Thompson Siegel & Walmsley LLC purchased a new position in shares of Scholastic in the 4th quarter worth approximately $7,070,000. 82.57% of the stock is currently owned by institutional investors.

Insider Activity at Scholastic

In other news, EVP Iole Lucchese sold 289,624 shares of the firm's stock in a transaction dated Wednesday, August 26th. The shares were sold at an average price of $39.76, for a total value of $11,515,450.24. Following the completion of the sale, the executive vice president owned 289,623 shares in the company, valued at approximately $11,515,410.48. This trade represents a 50.00% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Kaya Henderson sold 3,250 shares of the firm's stock in a transaction dated Thursday, August 6th. The stock was sold at an average price of $40.25, for a total transaction of $130,812.50. Following the completion of the sale, the director directly owned 7,113 shares of the company's stock, valued at approximately $286,298.25. The trade was a 31.36% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 294,986 shares of company stock valued at $11,731,334. Insiders own 12.77% of the company's stock.

Scholastic Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Friday, October 30th will be given a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 3.0%. The ex-dividend date is Friday, October 30th. Scholastic's dividend payout ratio is currently 71.43%.

Key Scholastic News

Here are the key news stories impacting Scholastic this week:

• Positive Sentiment: Shares gained following coverage of the company’s difficult first quarter, suggesting that some investors may see the weakness as already reflected in the stock price. Scholastic stock gains after a difficult first quarter
• Positive Sentiment: Sidoti slightly improved its Q1 fiscal 2028 EPS forecast to a loss of $3.31 from a projected loss of $3.34. While still negative, the revision indicates marginally better expectations for that quarter. Sidoti earnings estimates for Scholastic
• Neutral Sentiment: The company’s Q1 fiscal 2027 earnings call transcript is now available, giving investors additional details to assess operating performance and management’s outlook. Scholastic Q1 2027 earnings call transcript
• Negative Sentiment: Sidoti reduced its fiscal 2027 EPS estimate to $1.29 from $1.46, a meaningful cut that points to weaker expected profitability. It also lowered its Q3 fiscal 2027 forecast to a loss of $0.88 from $0.84 and trimmed Q3 fiscal 2028 EPS to a loss of $0.72 from $0.71.
• Negative Sentiment: B. Riley lowered its price target to $35 from $42 and maintained a “neutral” rating, limiting the implied upside and signaling reduced confidence in Scholastic’s near-term valuation.

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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