Overview

* Scholastic fiscal Q1 revenue falls 5%, missing analyst expectations, per LSEG data

* Adjusted EPS misses estimates, while adjusted EBITDA beats expectations, per LSEG data

* Co affirms fiscal 2026 guidance

Outlook

* Scholastic affirms fiscal 2026 guidance, citing strategic initiatives and growth potential

* Company sees strong fall book fair bookings, exceeding prior year

* Scholastic faces challenges in Education Solutions due to volatile funding

* Company exploring sale-leaseback transactions to enhance liquidity

Result Drivers

* CHILDREN'S BOOKS - Revenue in the Children's Book Publishing and Distribution segment rose 4%, driven by increased book fair engagement

* EDUCATION SOLUTIONS - Revenue fell 28% due to funding uncertainties impacting school purchases

* ENTERTAINMENT - Revenue decreased 18% due to production delays

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q1 Miss $225.60 $238.90

Revenue mln mln (2

Analysts

)

Q1 Miss -$2.52 -$2.44

Adjusted (2

EPS Analysts

)

Q1 EPS -$2.83

Q1 Beat -$55.70 -$62.80

Adjusted mln mln (2

EBITDA Analysts

)

Q1 Beat -$81.90 -$83 mln

Adjusted mln (2

Operatin Analysts

g Income )

Q1 -$92.20

Operatin mln

g Income

Q1 -$97 mln

Pretax

Profit

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 ( SCHL ) is $36.00, about 24.4% above its September 17 closing price of $27.21

Press Release:

(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.)