REFILE-Scholastic Q3 revenue falls 2%, launches $300 mln buyback

Reuters04:12
REFILE-Scholastic Q3 revenue falls 2%, launches $300 mln buyback

Corrects to remove word 'adjusted' from second Overview bullet

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.

(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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