Sidoti Issues Optimistic Estimate for Scholastic Earnings

Key Points

• Sidoti raised its Q2 2027 EPS estimate for Scholastic to $3.26 from $3.22, while projecting $3.96 for Q2 2028 and $2.64 for full-year 2028.
• Scholastic’s latest quarterly EPS of $2.19 modestly exceeded the $2.16 consensus, but revenue of $476.1 million fell well short of the $517.1 million estimate, highlighting ongoing sales pressure.
• The company increased its quarterly dividend by 25% to $0.25 per share, or $1.00 annually, producing a 2.3% yield; analysts nevertheless maintain a consensus “Hold” rating with a $42 target price.

Scholastic Corporation (NASDAQ:SCHL - Free Report) - Investment analysts at Sidoti upped their Q2 2027 EPS estimates for Scholastic in a research note issued to investors on Friday, July 24th. Sidoti analyst B. Mccarthy now expects that the company will post earnings per share of $3.26 for the quarter, up from their previous estimate of $3.22. The consensus estimate for Scholastic's current full-year earnings is $2.61 per share. Sidoti also issued estimates for Scholastic's Q2 2028 earnings at $3.96 EPS and FY2028 earnings at $2.64 EPS.

Several other brokerages have also recently issued reports on SCHL. Zacks Research cut Scholastic from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, May 19th. Weiss Ratings restated a "hold (c+)" rating on shares of Scholastic in a report on Thursday, June 18th. Wall Street Zen lowered Scholastic from a "buy" rating to a "hold" rating in a research report on Saturday, April 25th. Finally, B. Riley Financial increased their price target on Scholastic from $40.00 to $42.00 and gave the company a "neutral" rating in a research report on Wednesday, July 8th. Three research analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $42.00.

Scholastic Price Performance

NASDAQ:SCHL opened at $43.15 on Monday. Scholastic has a 52 week low of $22.68 and a 52 week high of $48.07. The company has a fifty day simple moving average of $43.78 and a two-hundred day simple moving average of $38.97. The company has a market cap of $938.08 million, a price-to-earnings ratio of 18.44, a price-to-earnings-growth ratio of 1.38 and a beta of 0.99.

Scholastic (NASDAQ:SCHL - Get Free Report) last released its earnings results on Thursday, July 23rd. The company reported $2.19 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.16 by $0.03. Scholastic had a net margin of 3.58% and a return on equity of 5.08%. The company had revenue of $476.10 million for the quarter, compared to analyst estimates of $517.06 million. During the same period in the prior year, the business earned $0.59 EPS.

Scholastic Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Monday, August 31st will be given a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 2.3%. This is an increase from Scholastic's previous quarterly dividend of $0.20. The ex-dividend date is Monday, August 31st. Scholastic's payout ratio is presently 32.26%.

Institutional Trading of Scholastic

A number of large investors have recently made changes to their positions in the company. Alliancebernstein L.P. increased its holdings in shares of Scholastic by 879.3% in the 3rd quarter. Alliancebernstein L.P. now owns 1,159,261 shares of the company's stock valued at $31,741,000 after acquiring an additional 1,040,880 shares during the period. Verition Fund Management LLC acquired a new stake in Scholastic during the 3rd quarter worth $7,288,000. Thompson Siegel & Walmsley LLC acquired a new stake in Scholastic during the 4th quarter worth $7,070,000. Invesco Ltd. grew its position in Scholastic by 57.2% during the 4th quarter. Invesco Ltd. now owns 424,973 shares of the company's stock worth $12,592,000 after purchasing an additional 154,668 shares during the last quarter. Finally, AQR Capital Management LLC grew its position in Scholastic by 160.5% during the 1st quarter. AQR Capital Management LLC now owns 157,436 shares of the company's stock worth $2,972,000 after purchasing an additional 96,998 shares during the last quarter. 82.57% of the stock is owned by institutional investors and hedge funds.

More Scholastic News

Here are the key news stories impacting Scholastic this week:

• Positive Sentiment: Scholastic raised its quarterly dividend to $0.25 per share, a 25% increase from $0.20, signaling confidence in cash flow and returning more capital to shareholders.
• Positive Sentiment: The company projected fiscal 2027 adjusted EBITDA of $135 million to $145 million and revenue growth of 2% to 4%, indicating a return to growth after a challenging year. Scholastic projects 2%-4% revenue growth and $135M-$145M adjusted EBITDA in fiscal 2027, following 25% dividend increase
• Positive Sentiment: Fiscal 2026 adjusted EBITDA came in at $151.5 million, up 4% and in line with guidance, showing operating resilience despite a tougher environment. Scholastic Reports Fourth Quarter and Fiscal 2026 Results
• Neutral Sentiment: For the quarter, Scholastic reported earnings of $2.19 per share, above estimates of $2.16, but revenue of $476.1 million missed expectations of $517.1 million, leaving investors focused on the sales shortfall. Scholastic: Fiscal Q4 Earnings Snapshot
• Neutral Sentiment: Management highlighted a multi-year transformation and said fiscal 2026 showed the earnings power of a more focused Scholastic, but investors will likely wait for evidence that revenue growth is improving. Scholastic Corp (SCHL) Q4 2026 Earnings Call Highlights: Navigating Challenges with Strategic ...
• Negative Sentiment: Scholastic’s lower-than-expected revenue and cautious outlook relative to analyst revenue expectations suggest near-term pressure on the stock despite the earnings beat.

Scholastic Company Profile

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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