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NEW YORK - Scholastic Corporation (NASDAQ:SCHL) shares gained 4.7% after the children’s publishing and education company reported better-than-expected fourth-quarter results and issued an optimistic outlook for fiscal 2026.
The company posted adjusted earnings per share of $0.87 for the quarter ended May 31, exceeding analyst estimates of $0.85. Revenue rose 7% YoY to $508.3 million, comfortably beating the consensus forecast of $494.59 million. The strong performance was primarily driven by the Children’s Book Publishing and Distribution segment, which saw a 9% revenue increase to $288.2 million.
"Scholastic delivered solid financial results in fiscal 2025, with strong Adjusted EBITDA in line with our original guidance," said Peter Warwick, President and Chief Executive Officer. "This strong finish reflects meaningful progress on our 360-degree IP strategy."
The company’s fourth-quarter performance was bolstered by a 19% increase in Consolidated Trade revenues to $97.3 million, reflecting strong sales of "Sunrise on the Reaping," the latest installment in Suzanne Collins’ Hunger Games series. Book Fairs revenues also grew 5% to $177.8 million due to higher fair count.
Looking ahead, Scholastic is targeting significant growth in fiscal 2026, with Adjusted EBITDA expected to reach $160-170 million. Revenue is projected to grow 2-4%, despite anticipated headwinds from school spending and approximately $10 million in incremental expenses related to higher tariff rates.
The company has also retained Newmark Group (NASDAQ:NMRK) to identify investment partners for potential sale-leaseback transactions of its real estate assets, which could provide significant liquidity for debt reduction and share repurchases.
During fiscal 2025, Scholastic returned over $90 million to shareholders through $22.6 million in dividends and the repurchase of 3.48 million shares for $70 million.
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