Core Insights - Scholastic Corporation, a prominent player in the education publishing sector, is experiencing significant financial challenges despite its strong brand presence [1][6] - The company reported an earnings per share (EPS) of -$2.52, which was below the estimated EPS of -$2.44, indicating a negative surprise and a decline from the previous year's EPS of -$2.13 [2][6] - Revenue for the quarter ending August 2025 was $225.6 million, significantly below the estimated $552.37 million, and marked a 4.9% decline from the same period last year [3][6] Financial Performance - Scholastic has only surpassed consensus EPS estimates twice in the last four quarters, reflecting inconsistency in meeting market expectations [2] - The revenue surprise was -5.57%, and the company has only exceeded consensus revenue estimates once in the last four quarters, indicating ongoing challenges in revenue growth [3] - The price-to-sales ratio is approximately 0.41, while the enterprise value to sales ratio is about 0.58, suggesting a moderate valuation relative to sales [4] Financial Ratios - The debt-to-equity ratio of 0.42 indicates a moderate level of debt compared to equity, and the current ratio of 1.16 suggests reasonable liquidity to cover short-term liabilities [4] - The negative price-to-earnings ratio of -378.50 and an earnings yield of -0.26% highlight ongoing financial difficulties [5] - The enterprise value to operating cash flow ratio of 10.82 reflects the company's operational cash generation relative to its valuation [5]

Financial Performance - Scholastic reported a quarterly loss of $2.52 per share, which was worse than the Zacks Consensus Estimate of a loss of $2.44, and compared to a loss of $2.13 per share a year ago, indicating a decline in performance [1] - The company posted revenues of $225.6 million for the quarter ended August 2025, missing the Zacks Consensus Estimate by 5.57% and down from $237.2 million year-over-year [2] - Over the last four quarters, Scholastic has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] Stock Performance and Outlook - Scholastic shares have increased approximately 27.6% since the beginning of the year, outperforming the S&P 500's gain of 12.2% [3] - The current consensus EPS estimate for the upcoming quarter is $2.05 on revenues of $552.37 million, and for the current fiscal year, it is $1.23 on revenues of $1.66 billion [7] Industry Context - The Publishing - Books industry, to which Scholastic belongs, is currently ranked in the bottom 1% of over 250 Zacks industries, indicating a challenging environment [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Scholastic's stock performance [5]

Core Insights - Scholastic reported quarterly earnings of $0.87 per share, exceeding the Zacks Consensus Estimate of $0.85 per share, but down from $1.73 per share a year ago, indicating an earnings surprise of +2.35% [1] - The company achieved revenues of $508.3 million for the quarter ended May 2025, surpassing the Zacks Consensus Estimate by 2.77% and up from $474.9 million year-over-year [2] - Scholastic has surpassed consensus EPS estimates three times over the last four quarters and topped revenue estimates twice in the same period [2] Earnings Outlook - The sustainability of Scholastic's stock price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is -$2.09 on revenues of $244.84 million, while for the current fiscal year, it is $2.13 on revenues of $1.7 billion [7] Industry Context - The Publishing - Books industry, to which Scholastic belongs, is currently ranked in the top 39% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]