Sidoti Weighs in on Scholastic's Q2 Earnings (NASDAQ:SCHL)

Key Points

• Sidoti raised Scholastic’s Q2 2027 EPS estimate to $3.43 from $3.29, while forecasting $2.40 for Q4 2027 and $4.07 for Q2 2028.
• Scholastic’s latest quarter fell short of expectations, with revenue of $216.8 million versus $224.7 million expected and a loss of $3.63 per share compared with the projected $3.42 loss.
• Analysts maintain a consensus “Hold” rating and $42 average price target; the company also declared a quarterly dividend of $0.25, representing a 3.1% yield.

Scholastic Corporation (NASDAQ:SCHL - Free Report) - Equities researchers at Sidoti increased their Q2 2027 EPS estimates for Scholastic in a report issued on Friday, September 25th. Sidoti analyst B. Mccarthy now expects that the company will post earnings of $3.43 per share for the quarter, up from their prior estimate of $3.29. The consensus estimate for Scholastic's current full-year earnings is $1.50 per share. Sidoti also issued estimates for Scholastic's Q4 2027 earnings at $2.40 EPS and Q2 2028 earnings at $4.07 EPS.

A number of other research firms have also commented on SCHL. Zacks Research upgraded Scholastic from a "strong sell" rating to a "hold" rating in a report on Tuesday, September 22nd. B. Riley Financial boosted their target price on Scholastic from $40.00 to $42.00 and gave the company a "neutral" rating in a research note on Wednesday, July 8th. Finally, Weiss Ratings upgraded Scholastic from a "hold (c)" rating to a "hold (c+)" rating in a report on Friday, September 11th. Three analysts have rated the stock with a Hold rating, According to data from MarketBeat, Scholastic has a consensus rating of "Hold" and an average target price of $42.00.

Scholastic Price Performance

NASDAQ SCHL opened at $32.35 on Monday. Scholastic has a 1 year low of $26.00 and a 1 year high of $48.07. The stock has a market capitalization of $610.12 million, a PE ratio of 23.11, a PEG ratio of 1.66 and a beta of 1.01. The company has a debt-to-equity ratio of 0.10, a current ratio of 1.23 and a quick ratio of 0.78. The business's 50-day moving average is $39.42 and its 200 day moving average is $40.43.

Scholastic (NASDAQ:SCHL - Get Free Report) last issued its quarterly earnings data on Thursday, September 24th. The company reported ($3.63) EPS for the quarter, missing the consensus estimate 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%.

Scholastic Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, December 15th. Investors of record on Friday, October 30th will be paid a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 3.1%. The ex-dividend date of this dividend is Friday, October 30th. Scholastic's dividend payout ratio is presently 71.43%.

Insider Buying and Selling

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

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the business. OMERS ADMINISTRATION Corp bought a new position in Scholastic during the 1st quarter valued at approximately $1,164,000. Hsbc Holdings PLC bought a new stake in Scholastic in the second quarter worth $1,236,000. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new stake in Scholastic in the second quarter worth $1,373,000. Principal Financial Group Inc. grew its stake in shares of Scholastic by 62.1% in the first quarter. Principal Financial Group Inc. now owns 174,539 shares of the company's stock worth $6,817,000 after acquiring an additional 66,890 shares during the last quarter. Finally, Segall Bryant & Hamill LLC bought a new position in shares of Scholastic during the first quarter valued at $1,352,000. 82.57% of the stock is currently owned by institutional investors.

Key Stories Impacting Scholastic

Here are the key news stories impacting Scholastic this week:

• Positive Sentiment: Scholastic reaffirmed its fiscal 2027 outlook, calling for approximately 2%–4% revenue growth, adjusted EBITDA of $135 million–$145 million and free cash flow of $35 million–$40 million. Management expects the fall Book Fairs season to support activity later in the year. Scholastic fiscal 2027 outlook
• Positive Sentiment: The company returned approximately $29.6 million to investors through share repurchases and dividends during the quarter. An update to its previously announced equity buyback plan also provided ongoing support for the stock. Scholastic equity buyback update
• Neutral Sentiment: Zacks upgraded Scholastic from “strong sell” to “hold,” suggesting reduced bearish conviction but not a bullish recommendation.
• Negative Sentiment: Fiscal first-quarter revenue fell 4% year over year to $216.8 million, below analysts’ $224.7 million estimate. The company reported a loss of $3.63 per share, missing the expected $3.42 loss; the loss also widened from $2.52 per share a year earlier. Scholastic fiscal 2027 first-quarter results
• Negative Sentiment: Weakness was concentrated in Children’s Book Publishing and Distribution and Education, while operating cash use increased to $94.6 million from $81.8 million in the prior-year quarter. These results raised concerns about near-term execution despite the maintained annual guidance. Scholastic downbeat first-quarter results

Scholastic Company Profile

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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