REFILE-Scholastic Q3 revenue falls 2%, launches $300 mln buyback
Overview
US children's publishing and media firm's fiscal Q3 revenue fell 2% yr/yr
EPS for fiscal Q3 improved yr/yr
Company announced $300 mln share repurchase program including planned $200 mln Dutch auction tender offer
Outlook
Scholastic sees fiscal 2026 Adjusted EBITDA of $146 mln to $156 mln
Company expects fiscal 2026 free cash flow to exceed $430 mln
Scholastic expects fiscal 2026 revenue to be approximately flat with prior year
Result Drivers
PUBLISHING CALENDAR - Co said lower Q3 revenue in Children's Book Publishing and Distribution and International segments was due to timing of publishing releases compared to prior year
BOOK FAIRS - Co said Book Fairs revenue grew 2% yr/yr, driven by higher revenue per fair
EDUCATION FUNDING - Co said Education segment revenue declined due to continued challenging funding environment for schools and districts
Company press release: ID:nPn7CpnNla
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Slight Miss* | $329.10 mln | $331.03 mln (2 Analysts) |
Q3 Adjusted EPS | Beat | -$0.15 | -$0.37 (2 Analysts) |
Q3 EPS |
| $2.55 |
|
Q3 Adjusted EBITDA | Miss | $0 | $3.57 mln (2 Analysts) |
Q3 Adjusted Operating Income | Miss | -$24.30 mln | -$19.90 mln (1 Analyst) |
Q3 Operating Income |
| -$26.90 mln |
|
Q3 Pretax Profit |
| $91.80 mln |
|
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The one available analyst rating on the shares is "hold"
The average consensus recommendation for the consumer publishing peer group is "buy."
Wall Street's median 12-month price target for Scholastic Corp is $36.00, about 7.8% above its March 18 closing price of $33.39
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 20 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
