Sidoti Issues Pessimistic Outlook for Scholastic Earnings

Scholastic Corporation (NASDAQ:SCHL) – Analysts at Sidoti lowered their Q3 2027 earnings per share estimates for shares of Scholastic in a research report issued to clients and 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 previous estimate of ($0.84). The consensus estimate for Scholastic’s current full-year earnings is $1.41 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.

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 report on Tuesday, September 22nd. B. Riley Financial reduced their price target on shares of Scholastic from $42.00 to $35.00 and set a “neutral” rating for the company in a report on Monday. Finally, Weiss Ratings lowered shares of Scholastic from a “hold (c+)” rating to a “hold (c-)” rating in a report on Monday. Three equities research analysts have rated the stock with a Hold rating, According to MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $35.00.

Scholastic Trading Up 1.0%

NASDAQ:SCHL opened at $35.16 on Tuesday. The company has a debt-to-equity ratio of 0.27, a current ratio of 1.25 and a quick ratio of 0.78. The business’s 50-day simple moving average is $38.70 and its 200-day simple moving average is $40.44. Scholastic has a fifty-two week low of $26.38 and a fifty-two week high of $48.07. The stock has a market capitalization of $663.12 million, a PE ratio of 25.11, a price-to-earnings-growth ratio of 1.90 and a beta of 1.01.

Scholastic (NASDAQ:SCHL) last posted its 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 business had revenue of $216.80 million during the quarter, compared to analyst estimates of $224.69 million. Scholastic had a net margin of 3.60% and a return on equity of 5.00%.

Hedge Funds Weigh In On Scholastic

Several hedge funds and other institutional investors have recently made changes to their positions in the company. BlackRock Inc. bought a new stake in Scholastic in the second quarter valued at approximately $120,724,000. Empowered Funds LLC bought a new position in shares of Scholastic during the 2nd quarter worth approximately $11,662,000. Bank of New York Mellon Corp acquired a new position in shares of Scholastic during the 2nd quarter worth approximately $11,417,000. Thompson Siegel & Walmsley LLC acquired a new position in shares of Scholastic during the 4th quarter worth approximately $7,070,000. Finally, Hennessy Advisors Inc. bought a new stake in Scholastic in the 2nd quarter valued at $10,442,000. 82.57% of the stock is owned by institutional investors.

Insider Buying and Selling

In related news, EVP Iole Lucchese sold 289,624 shares of the stock in a transaction that occurred on Wednesday, August 26th. The stock was sold at an average price of $39.76, for a total transaction of $11,515,450.24. Following the completion of the transaction, the executive vice president directly owned 289,623 shares of the company’s stock, valued at approximately $11,515,410.48. This represents a 50.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Andres A. Alonso sold 2,112 shares of the firm’s stock in a transaction that occurred on Wednesday, August 26th. The shares were sold at an average price of $40.28, for a total value of $85,071.36. Following the completion of the transaction, the director owned 21,189 shares of the company’s stock, valued at approximately $853,492.92. This represents a 9.06% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 294,986 shares of company stock worth $11,731,334. Corporate insiders own 12.77% of the company’s stock.

Scholastic Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Investors of record on Friday, October 30th will be given a $0.25 dividend. The ex-dividend date of this dividend is Friday, October 30th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 2.8%. Scholastic’s payout ratio is currently 71.43%.

More Scholastic News

Here are the key news stories impacting Scholastic this week:

• Positive Sentiment: Scholastic agreed to acquire Cottage Door Press for approximately $71 million, subject to customary adjustments. The deal expands Scholastic’s early-childhood publishing portfolio, adds innovative book formats and sales channels, and could create longer-term growth opportunities. Shares reportedly climbed in premarket trading following the announcement. Scholastic to Acquire Cottage Door Press
• Positive Sentiment: Management highlighted the resilience of Scholastic’s core franchises, including book fairs and children’s publishing, during its earnings discussions. The Cottage Door transaction reinforces the company’s strategy of investing in areas with potential for growth across formats and distribution channels. Scholastic Earnings Call
• Neutral Sentiment: Analysts’ questions and the earnings-call commentary focused on book-fair performance, franchise activity, and the outlook for education markets. The discussion points to a mixed setup: established franchises are performing relatively well, but near-term results remain seasonal and exposed to education-sector pressures. SCHL Q3 Deep Dive
• Negative Sentiment: B. Riley lowered its expectations for Scholastic’s stock price, while Sidoti reduced several future EPS forecasts, including FY2027 earnings to $1.29 from $1.46 and Q3 2027 EPS to a loss of $0.88 from a loss of $0.84. The revisions signal concerns about slower earnings growth and may limit investor enthusiasm. B. Riley Lowers Scholastic Expectations

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.