Scholastic Q4 revenue falls on lower trade and international sales

Overview

• Children's book publisher's fiscal Q4 revenue fell 6% yr/yr on lower trade and international sales

• Fiscal Q4 adjusted EPS and adjusted EBITDA both rose yr/yr

Outlook

• Scholastic expects fiscal 2027 revenue growth of about 2% to 4%

• Company sees fiscal 2027 Adjusted EBITDA of $135 mln to $145 mln

• Scholastic expects fiscal 2027 free cash flow of $35 mln to $40 mln

Result Drivers

• BOOK FAIRS GROWTH - Book Fairs revenue rose 5% yr/yr in Q4, driven by higher fair count

• TRADE AND INTERNATIONAL DECLINE - Lower Trade and International revenues due to challenging comparison with prior-year publishing schedule and lower Education sales

• ENTERTAINMENT REBOUND - Entertainment segment revenue increased 42% yr/yr, reflecting higher production services revenues

Company press release: ID:nPn4rJPkda

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "hold"

• The average consensus recommendation for the consumer publishing peer group is "buy."

• Wall Street's median 12-month price target for Scholastic Corp is $42.00, about 9.4% below its July 22 closing price of $46.36

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 16 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)