Scholastic has a decent outlook, targeting 2–4% revenue growth and $135–$145M adjusted EBITDA for fiscal 2027 - adjusted for the leaseback effects. Key catalysts include the upcoming Hunger Games movie and the Harry Potter HBO series, both expected to drive franchise momentum and book sales, suggesting a decent quarter for fairs. Valuation is maybe interesting, with SCHL trading at a discount to possible peers like Pearson, despite having pretty top-shelf franchises to publish.
Scholastic Corporation (SCHL) Q1 2027 Earnings Call Transcript
Scholastic NASDAQ: SCHL reported a wider adjusted operating loss in its seasonally slow fiscal 2027 first quarter, while reaffirming its full-year outlook as it enters the back-to-school and holiday selling periods with new releases from major franchises and early strength in book fairs.
| Media Industry | Communication Services Sector | Peter Warwick CEO | XMUN Exchange | US8070661058 ISIN |
| US Country | 5,848 Employees | 30 Oct 2026 Last Dividend | 17 Jan 2001 Last Split | 12 May 1987 IPO Date |
Founded in 1920 and headquartered in New York, New York, Scholastic Corporation stands out as a leading publisher and distributor of children’s books on a global scale. The company’s operations are classified into three main segments: Children's Book Publishing and Distribution, Education Solutions, and International. Scholastic is renowned for its significant role in creating and distributing a wide range of children's literature, educational materials, and electronic products, primarily through school book clubs, fairs, and various trade channels. Scholastic has earned a reputable position in the industry, particularly for its original publications and licenses of high-profile properties.
Children's Book Publishing and Distribution: This segment focuses on the publication and distribution of an expansive collection of children’s books, eBooks, media, and interactive products. Noteworthy original publications include beloved series and titles like Harry Potter, The Hunger Games, Dog Man, Magic School Bus, and Goosebumps. Scholastic also holds licenses to popular properties such as Peppa Pig and Pokemon. Additionally, it produces novelty products for children, including interactive books and activities under the Klutz brand and the Make Believe Ideas series, along with educational non-fiction books under the Children’s Press and Franklin Watts brands.
Education Solutions: Scholastic’s Education Solutions segment is dedicated to publishing and distributing classroom magazines, including titles like Scholastic News and Storyworks, and providing supplemental teaching materials, programs, and consulting services. This segment aims to enhance educational experiences in classrooms with a variety of formats, from print to digital. Additionally, Scholastic offers a range of reference and non-fiction products online, catering to the needs of educators and students alike.
International: The International segment extends Scholastic’s reach beyond the United States, publishing and distributing children’s books in English and French, and facilitating school-based marketing channels across the globe. This segment supports international markets with both original and licensed children’s books along with supplemental educational materials, including professional books for teachers. The aim is to promote literacy and learning through a diverse range of products tailored to meet the educational requirements of global communities.