Shares of Scholastic Corporation (SCHL) are set to open sharply lower on Friday, plunging 11.07% in pre-market trading 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, continuing the negative trend observed in the post-market session on Thursday.
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. However, investors seem to be focusing on the near-term challenges, as reflected in the significant pre-market decline.
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