Shares of Scholastic Corporation (SCHL) are set to open sharply lower in Friday's pre-market trading, plummeting 11.07% following the release of disappointing fiscal first-quarter results for 2026. The children's book publisher and education company reported a wider loss and missed revenue estimates, extending the sell-off that began in Thursday's post-market session.
Scholastic posted a loss of $71.1 million, or $2.83 per share, compared to a loss of $62.5 million, or $2.21 per share, in the same period last year. On an adjusted basis, the loss per share was $2.52, missing analyst estimates of $2.44. Revenue for the quarter fell 5% to $225.6 million, falling short of the expected $238.9 million.
The company attributed the disappointing results to a challenging environment in its education solutions segment, where revenue decreased by 28%. Schools delayed or pulled back on purchases due to uncertain federal and state funding, creating a volatile spending environment. Despite the weak quarter, Scholastic affirmed its full-year guidance, expecting revenue growth of 2% to 4% for fiscal 2026. CEO Peter Warwick stated that the company made "steady progress" in advancing strategic initiatives during the quarter, but investors seem to be focusing on the near-term challenges, as reflected in the pre-market stock price movement.
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