
Overview
Scholastic fiscal Q4 revenue rises 7%, beating analyst expectations
Adjusted EBITDA for fiscal Q4 exceeds estimates, reflecting effective cost management
Adjusted EPS for fiscal Q4 misses analyst expectations, impacted by school spending pressures
Shares of the publishing firm rose 6.7% in extended trading
Outlook
Scholastic targets fiscal 2026 Adjusted EBITDA of $160 mln to $170 mln
Company expects fiscal 2026 revenue growth of 2% to 4%
Scholastic anticipates fiscal Q1 seasonal loss similar to prior year
Company sees continued headwinds from school spending impacting results
Result Drivers
CHILDREN'S BOOK SUCCESS - Revenue growth driven by strong performance in Children's Book Publishing and Distribution, particularly the latest Hunger Games release
ENTERTAINMENT EXPANSION - Integration of 9 Story Media Group boosted Entertainment segment revenue
EDUCATION CHALLENGES - Education Solutions segment faced revenue decline due to macroeconomic pressures on school spending
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Beat | $508.30 mln | $494.60 mln (1 Analyst) |
Q4 Adjusted EPS | Miss | $0.48 | $0.85 (1 Analyst) |
Q4 Adjusted EBITDA | Beat | $91.20 mln | $85.70 mln (1 Analyst) |
Q4 Adjusted Operating Income | Beat | $63.40 mln | $62.60 mln (1 Analyst) |
Q4 Operating Income |
| $53.50 mln |
|
Q4 Pretax Profit |
| $48.90 mln |
|
Analyst Coverage
Wall Street's median 12-month price target for Scholastic Corp is $35.00, about 35.5% above its July 23 closing price of $22.58
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 10 three months ago
Press Release: ID:nPn33qHPRa