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Scholastic Corporation (NASDAQ:SCHL), a leading publisher and distributor of children’s books with annual revenue of $1.59 billion, has seen its stock price tumble to $16.06 USD. According to InvestingPro analysis, the stock appears undervalued, trading at just 0.46 times book value with an attractive 4.88% dividend yield. This significant downturn reflects a broader trend for the company, which has experienced a stark 1-year change with a decline of -53.48%. Despite market challenges, InvestingPro data reveals the company has maintained dividend payments for 18 consecutive years, demonstrating financial resilience. Investors are closely monitoring Scholastic’s performance as it navigates through the current market conditions, which have been particularly unforgiving to the publishing industry. The company’s ability to adapt to the evolving demands of digital media and education technology remains a critical factor in its potential recovery and future growth. For deeper insights, access the comprehensive Pro Research Report available on InvestingPro, covering this and 1,400+ other US stocks.
In other recent news, Scholastic Corporation reported its third-quarter fiscal 2025 earnings, showing a significant improvement in earnings per share (EPS) and a reduction in net loss. The company posted an EPS of -$0.13, surpassing the forecasted -$0.78, and a net loss of $1.3 million, down from $23.3 million in the previous year. However, revenue was slightly below expectations, coming in at $335.4 million compared to the projected $347.05 million. Despite the revenue shortfall, strategic initiatives and product innovations have contributed to the company’s improved financial performance. Analysts from Sidoti have shown interest in the potential for backlist sales driven by strong new releases such as the latest titles in the Dogman and Hunger Games series. Scholastic also highlighted ongoing challenges, including cautious consumer spending and delayed purchases by school districts. The company remains optimistic about its long-term growth, with a projected full-year adjusted EBITDA of approximately $140 million. Additionally, Scholastic is conducting a strategic review of its Education Solutions segment to optimize its long-term potential.
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