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Publishing firm Scholastic beats Q4 revenue beats estimates on strength in children's book publishing

ReutersJul 24, 2025 8:16 PM


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

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