Scholastic (NASDAQ:SCHL) Shares Gap Down Following Weak Earnings

Key Points

• Scholastic's shares gapped down to $23.53 following a disappointing earnings report, with an EPS of ($2.52) that missed estimates by $0.08.
• The company announced a quarterly dividend of $0.20 per share, payable on December 15th, which represents a yield of 3.3% despite a negative dividend payout ratio of -2,000.00%.
• Wall Street analysts have mixed views on Scholastic, with one rating the stock as a "buy" and setting a price target of $37.00, while others have downgraded it to a "hold" rating.

Scholastic Corporation (NASDAQ:SCHL - Get Free Report) shares gapped down before the market opened on Friday following a weaker than expected earnings announcement. The stock had previously closed at $27.54, but opened at $23.53. Scholastic shares last traded at $23.62, with a volume of 464,391 shares.

The company reported ($2.52) earnings per share for the quarter, missing the consensus estimate of ($2.44) by ($0.08). The company had revenue of $225.60 million for the quarter, compared to analysts' expectations of $240.41 million. Scholastic had a negative net margin of 0.65% and a positive return on equity of 1.08%. During the same quarter last year, the firm posted ($2.13) earnings per share. Scholastic has set its FY 2026 guidance at EPS.

Scholastic Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, December 15th. Investors of record on Friday, October 31st will be issued a $0.20 dividend. This represents a $0.80 annualized dividend and a yield of 3.2%. The ex-dividend date of this dividend is Friday, October 31st. Scholastic's dividend payout ratio is currently -121.21%.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on SCHL shares. Wall Street Zen lowered shares of Scholastic from a "buy" rating to a "hold" rating in a research report on Friday, September 5th. B. Riley assumed coverage on Scholastic in a research report on Wednesday, September 3rd. They set a "buy" rating and a $37.00 price objective for the company. One analyst has rated the stock with a Buy rating, According to data from MarketBeat, Scholastic has a consensus rating of "Buy" and a consensus target price of $37.00.

Institutional Investors Weigh In On Scholastic

Institutional investors have recently made changes to their positions in the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in shares of Scholastic by 4.2% during the fourth quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 13,221 shares of the company's stock worth $282,000 after purchasing an additional 530 shares during the last quarter. US Bancorp DE increased its stake in Scholastic by 6.2% in the 1st quarter. US Bancorp DE now owns 11,137 shares of the company's stock worth $210,000 after buying an additional 654 shares during the period. Signaturefd LLC increased its stake in Scholastic by 819.5% in the 2nd quarter. Signaturefd LLC now owns 1,223 shares of the company's stock worth $26,000 after buying an additional 1,090 shares during the period. GAMMA Investing LLC increased its stake in Scholastic by 182.4% in the 1st quarter. GAMMA Investing LLC now owns 1,776 shares of the company's stock worth $34,000 after buying an additional 1,147 shares during the period. Finally, Public Sector Pension Investment Board increased its stake in Scholastic by 1.9% in the 2nd quarter. Public Sector Pension Investment Board now owns 80,195 shares of the company's stock worth $1,682,000 after buying an additional 1,509 shares during the period. Institutional investors own 82.57% of the company's stock.

Scholastic Trading Up 0.1%

The company has a debt-to-equity ratio of 0.26, a current ratio of 1.16 and a quick ratio of 0.76. The firm has a market capitalization of $635.19 million, a PE ratio of -38.42 and a beta of 1.24. The stock's 50-day moving average price is $25.05 and its 200 day moving average price is $20.95.

About Scholastic

Scholastic Corporation publishes and distributes children's books worldwide. It operates in three segments: Children's Book Publishing and Distribution, Education Solutions, and International. The Children's Book Publishing and Distribution segment engages in publication and distribution of children's print, digital, and audio books, as well as media and interactive products through its school reading events and trade channel; and operation of school-based book clubs and book fairs in the United States.