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]