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Scholastic Corporation (NASDAQ:SCHL), a leading publisher and distributor of children’s books, has seen its stock price tumble to $17.84, hovering near its 52-week low of $17.72. According to InvestingPro analysis, the company maintains strong fundamentals with a healthy current ratio of 1.23 and has maintained dividend payments for 18 consecutive years, currently yielding 4.43%. This latest price point reflects a significant downturn for the company, with a 1-year total return of -48.73%. Investors are closely monitoring Scholastic’s performance as it navigates through a challenging market environment. InvestingPro analysis suggests the stock is currently undervalued, with analysts forecasting net income growth and profitability this year. For deeper insights into Scholastic’s valuation and growth prospects, access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Scholastic Corporation reported a significant improvement in its third-quarter fiscal 2025 earnings, beating EPS expectations by a wide margin. The company posted an earnings per share (EPS) of -$0.13, surpassing the anticipated -$0.78, although its revenue of $335.4 million came in below the forecasted $347.05 million. Despite the revenue shortfall, Scholastic’s strategic initiatives and product innovations were credited for the financial improvements. The company also announced an adjusted EBITDA of $6.0 million, compared to a loss of $7.2 million in the same quarter last year. Scholastic’s net loss was reduced to $1.3 million from $23.3 million in the previous year, indicating a positive trend in financial management.
Additionally, Scholastic has been actively navigating challenging market conditions, including cautious consumer spending and uncertainty in federal education policy funding. The company projects full-year adjusted EBITDA of approximately $140 million and anticipates modest revenue growth. In response to the decline in its Education Solutions segment, Scholastic has initiated a strategic review to optimize its long-term potential. CEO Peter Warrick expressed confidence in the company’s long-term growth opportunities, despite near-term pressures.
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