Scholastic Corporation (NASDAQ:SCHL) Surpasses Earnings Expectations

Core Insights - Scholastic Corporation is a significant player in the publishing industry, particularly known for children's books and educational materials, with a strong global market presence [1] - The company's strategic focus on children's book publishing and distribution, especially during the back-to-school season, has been a key driver of its financial success [1] Financial Performance - Scholastic reported earnings per share (EPS) of $2.57 for the quarter ending November 2025, exceeding the Zacks Consensus Estimate of $2.07 and showing a year-over-year improvement from $1.82, resulting in an earnings surprise of +24.15% [2] - The company generated revenue of $551.1 million for the same quarter, slightly below the Zacks Consensus Estimate by 1.01%, but representing an increase from $544.6 million in the prior year, attributed to a successful back-to-school season and global publishing efforts [3] Strategic Initiatives - Scholastic has authorized a $150 million expanded share repurchase program, funded by proceeds from successful sale-leaseback transactions [4] - The Book Fairs division saw a successful back-to-school season, with an increase in the number of fairs and higher revenue per fair [4] Valuation Metrics - The company's price-to-sales ratio is 0.43, and the enterprise value to sales ratio is 0.37, indicating that investors are paying a reasonable amount for each dollar of sales [5] - Scholastic's current ratio of 1.80 reflects a strong ability to cover short-term liabilities with short-term assets, showcasing its solid financial position [5]