Oy vey, folks, hold onto your hats! Scholastic (SCHL +8.82%) stock did a little jig this week. A jig! After quarterly results that, shall we say, didn’t completely bomb. You know, like a book that doesn’t get thrown at someone’s head. A good sign, a very good sign.
According to those number-crunching geniuses at S&P Global Market Intelligence, the stock price went up more than 10%. Ten percent! That’s enough to buy, oh, a slightly used bookmark. But still, progress!
Q3 Earnings: Not a Disaster (Yet)
Now, let’s talk numbers. Scholastic’s revenue dipped 2% to $329.1 million. A dip, mind you, not a swan dive into the abyss. It’s like they’re trying to be modest. Children’s book sales were down 3% to $197.6 million. Apparently, kids these days are more interested in TikTok than Tom Sawyer. Who knew? Education revenue also took a tumble, down 2% to $56.1 million. Schools are strapped for cash, you see. It’s a tragedy! A tragedy I tell you! But, a little bit of good news: Entertainment sales jumped 25% to $16 million. Perhaps they’re selling miniature catapults for launching books at hecklers.
All told, Scholastic posted an adjusted loss of $0.15 per share. Now, a loss is never good, unless you’re playing poker. But it was significantly better than what Wall Street expected. Those analysts predicted a loss of $0.37! They were way off! It’s like predicting the weather in Florida – a fool’s errand.
Returning Capital to Shareowners (Because What Else Are They Gonna Do?)
So, Scholastic is trying to tighten its belt. They sold their New York City headquarters and a distribution center in Missouri for over $400 million. That’s a lot of money! Enough to buy a small country, or at least a really nice library. They’re using the cash to pay down debt and buy back shares – over $147 million worth! And they approved a $200 million tender offer as part of a new $300 million repurchase program. It’s like they’re trying to corner the market on their own stock. A bold move, I say! A very bold move!
They’re projecting $430 million in free cash flow for the year. That’s enough to keep the accountants happy, and maybe buy a new stapler. CEO Peter Warwick says they’re “focused on maximizing shareholder value, disciplined execution, and accelerating profitability.” He’s a smart man, that Warwick. A very smart man. He also wants to help children read, learn, and thrive. A noble goal, wouldn’t you say? Although, frankly, with the price of books these days, thriving might be a stretch.
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2026-03-22 02:14