Overview
Children's publishing firm's Q2 revenue rose 1% yr/yr
Company announced $150 mln expanded share repurchase authorization
Outlook
Scholastic expects fiscal 2026 Adjusted EBITDA of $146 mln to $156 mln
Company forecasts fiscal 2026 free cash flow to exceed $430 mln
Scholastic anticipates full-year revenue in line or modestly above prior year
Result Drivers
BOOK FAIRS SUCCESS - Scholastic reported a successful back-to-school season with higher fair count and increased revenue per fair
TRADE PUBLISHING GROWTH - Trade publishing saw strong results, led by best-selling titles in the Dog Man series and special editions of The Hunger Games and Harry Potter
DIGITAL ENGAGEMENT - Scholastic expanded its IP reach with growing engagement on digital platforms, including YouTube and a new streaming app
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Miss | $551.10 mln | $556.72 mln (2 Analysts) |
Q2 Adjusted EPS | Beat | $2.57 | $2.07 (2 Analysts) |
Q2 EPS | $2.17 | ||
Q2 Adjusted EBITDA | Beat | $122.50 mln | $109.76 mln (2 Analysts) |
Q2 Adjusted Operating Income | Beat | $95 mln | $84.90 mln (1 Analyst) |
Q2 Operating Income | $82.90 mln | ||
Q2 Pretax Profit | $75.90 mln |
Analyst Coverage
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the consumer publishing peer group is "hold."
Wall Street's median 12-month price target for Scholastic Corp is $36.00, about 25.7% above its December 17 closing price of $28.65
The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 16 three months ago
Press Release: ID:nPn1Kcj0Pa
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
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