Scholastic's shares suffered a setback on Friday.
In a disappointing turn of events, Scholastic's shares took a significant hit at the end of the trading week, plummeting by nearly 12%. The company's current stock price stands at $24.23, a decrease of $3.31 from the day's opening.
The S&P 500 index, on the other hand, was up by 0.4% at the end of the trading week. The market did not like what it saw in Scholastic's freshly published quarterly earnings report.
The company's revenue for the fiscal first quarter of 2026 was under the consensus analyst estimates of more than $240 million. Scholastic's fiscal first quarter revenue was $225.6 million, a decrease of nearly 12% year over year.
Despite the revenue shortfall, the company reaffirms its guidance for the current fiscal year, expecting a non-GAAP EBITDA of $160 million to $170 million and revenue growth of 2% to 4%.
Scholastic attributes a 28% drop in revenue to $40 million in its education solutions unit to funding uncertainties for public schools. The operating loss for the fiscal first quarter of 2026 was $81.9 million, or $2.52 per share. However, the operating loss for the quarter was narrower than the year-ago shortfall of $85.6 million.
The net loss per share for the fiscal first quarter of 2026 was under the consensus analyst estimates of $2.45 per share. Scholastic's gross margin stands at 51.74%.
The company's dividend yield is 3.30%. The market capitalization of Scholastic is $608 million.
It's worth noting that the quarterly earnings report was published by Scholastic just after market close on Thursday. The stock's trading volume for the day was 2,118,597 shares, higher than its average volume of 320,798 shares.
The 52-week range for Scholastic's stock is $15.77 to $34.18. The current CEO of Scholastic, Peter Warwick, was still serving in this role during the recent trading weekend.
Investors will be keeping a close eye on Scholastic's performance in the coming quarters as the company navigates these challenging times.
