Sidoti Weighs in on Scholastic's Q1 Earnings (NASDAQ:SCHL)

Key Points

• Sidoti lowered Scholastic’s Q1 2027 EPS estimate to a loss of $3.15 per share from $3.11, while forecasting full-year 2027 EPS of $1.46—below the $1.60 consensus estimate.
• Analyst sentiment remains cautious: Scholastic has an average rating of “Reduce,” with two Hold ratings and one Sell rating, and a consensus price target of $42 compared with the stock’s $35.58 opening price.
• Insiders sold nearly $11.7 million of Scholastic stock over the past three months, including a 289,624-share sale by EVP Iole Lucchese; institutional investors own 82.57% of the company.

Scholastic Corporation (NASDAQ:SCHL - Free Report) - Research analysts at Sidoti reduced their Q1 2027 earnings per share (EPS) estimates for Scholastic in a report issued on Tuesday, September 8th. Sidoti analyst B. Mccarthy now anticipates that the company will post earnings of ($3.15) per share for the quarter, down from their prior forecast of ($3.11). The consensus estimate for Scholastic's current full-year earnings is $1.60 per share. Sidoti also issued estimates for Scholastic's Q3 2027 earnings at ($0.84) EPS, Q4 2027 earnings at $2.29 EPS, FY2027 earnings at $1.46 EPS, Q1 2028 earnings at ($3.34) EPS, Q4 2028 earnings at $2.92 EPS and FY2028 earnings at $2.67 EPS.

SCHL has been the subject of several other research reports. Weiss Ratings cut Scholastic from a "hold (c+)" rating to a "hold (c)" rating in a research report on Tuesday, July 28th. B. Riley Financial raised their price objective on shares of Scholastic from $40.00 to $42.00 and gave the stock a "neutral" rating in a report on Wednesday, July 8th. Finally, Zacks Research lowered shares of Scholastic from a "hold" rating to a "strong sell" rating in a report on Monday, July 27th. Two research analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Scholastic has an average rating of "Reduce" and a consensus price target of $42.00.

Scholastic Price Performance

Shares of Scholastic stock opened at $35.58 on Thursday. The stock has a market capitalization of $671.04 million, a price-to-earnings ratio of 15.21, a PEG ratio of 1.75 and a beta of 1.01. Scholastic has a 1-year low of $22.68 and a 1-year high of $48.07. The company has a current ratio of 1.23, a quick ratio of 0.78 and a debt-to-equity ratio of 0.10. The firm has a fifty day simple moving average of $42.13 and a 200-day simple moving average of $40.38.

Scholastic (NASDAQ:SCHL - Get Free Report) last posted its earnings results on Thursday, July 23rd. The company reported $2.19 EPS for the quarter, topping the consensus estimate of $2.16 by $0.03. The firm had revenue of $476.10 million for the quarter, compared to the consensus estimate of $517.06 million. Scholastic had a net margin of 3.58% and a return on equity of 5.29%. During the same period in the prior year, the business posted $0.59 earnings per share.

Insider Activity

In other news, Director Kaya Henderson sold 3,250 shares of the company'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 transaction, the director directly owned 7,113 shares of the company's stock, valued at $286,298.25. This represents a 31.36% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Iole Lucchese sold 289,624 shares of the stock in a transaction dated Wednesday, August 26th. The stock was sold at an average price of $39.76, for a total value of $11,515,450.24. Following the transaction, the executive vice president owned 289,623 shares of the company's stock, valued at approximately $11,515,410.48. The trade was a 50.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 294,986 shares of company stock worth $11,731,334 over the last three months. Corporate insiders own 12.77% of the company's stock.

Hedge Funds Weigh In On Scholastic

Several hedge funds have recently made changes to their positions in SCHL. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in shares of Scholastic by 4.8% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 13,851 shares of the company's stock worth $262,000 after purchasing an additional 630 shares in the last quarter. Quantinno Capital Management LP grew its position in Scholastic by 3.2% in the first quarter. Quantinno Capital Management LP now owns 23,186 shares of the company's stock valued at $906,000 after purchasing an additional 729 shares in the last quarter. Deutsche Bank AG increased its stake in Scholastic by 4.1% in the 4th quarter. Deutsche Bank AG now owns 20,829 shares of the company's stock valued at $617,000 after buying an additional 824 shares during the last quarter. Meeder Asset Management Inc. acquired a new position in shares of Scholastic during the 2nd quarter worth approximately $43,000. Finally, Integrated Wealth Concepts LLC acquired a new position in Scholastic during the second quarter worth $56,000. 82.57% of the stock is owned by institutional investors.

Key Scholastic News

Here are the key news stories impacting Scholastic this week:

• Positive Sentiment: Sidoti raised its FY2027 EPS forecast to $1.46 from $1.44 and its FY2028 forecast to $2.67 from $2.64. The firm also lifted Q4 2027 EPS to $2.29 from $2.27 and Q4 2028 EPS to $2.92 from $2.89, signaling somewhat better expectations for year-end results. Sidoti earnings estimate revisions
• Positive Sentiment: Sidoti increased its Q2 2027 EPS estimate to $3.29 from $3.26 and its Q2 2028 estimate to $4.00 from $3.96, providing additional support for the longer-term earnings outlook. Sidoti quarterly earnings estimates
• Neutral Sentiment: Sidoti’s revised FY2027 EPS forecast of $1.46 remains below the broader consensus estimate of $1.60 for Scholastic’s current fiscal year, limiting the positive impact of the upgrades. Scholastic consensus earnings estimate
• Negative Sentiment: Sidoti lowered its estimates for Q1 2027 EPS to a loss of $3.15 from $3.11, Q3 2027 to a loss of $0.84 from $0.83, and Q1 2028 to a loss of $3.34 from $3.31. These reductions suggest more near-term earnings pressure and may weigh on investor sentiment. Sidoti lowered Scholastic EPS estimates

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.

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