Scholastic Stock Tumbles After Q1 Revenue and Earnings Miss

Shares of Scholastic Corp. (NASDAQ: SCHL) tumbled 12.1% in after-hours trading after the children's publishing company announced fiscal first-quarter 2027 results that fell short of analyst forecasts on both the top and bottom lines.

Quarterly Performance Misses Mark

Scholastic reported a double miss for the quarter, a key driver for the negative investor reaction. The company's performance included:

• Revenue: $216.8 million, a decline of 3.9% from the prior-year period and approximately 3.5% below consensus estimates.
• Adjusted Loss Per Share: $3.63, which was wider than the Wall Street consensus forecast of a $3.40 loss per share.

The company's operational profitability also weakened. The operating margin deteriorated to -42.5% from -37.3% in the same quarter a year ago. Adjusted EBITDA, a measure of operating performance, came in at a loss of $63.6 million, a 14.2% larger loss year-over-year.

Management Reaffirms Outlook

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Despite the weak quarterly results, company management reaffirmed its full-year guidance for fiscal 2027. Scholastic continues to target 2% to 4% revenue growth and an Adjusted EBITDA between $135 million and $145 million for the full year.

CEO Peter Warwick highlighted an encouraging sign, noting that bookings for the company's important Book Fair business were running ahead of the prior year. However, this positive signal was insufficient to offset investor disappointment with the headline misses in the quarterly report.

Market Context and Investor Reaction

The sharp sell-off reflects investor concerns about the company's growth trajectory, which follows a fiscal 2026 in which annual revenue declined 3%. Analyst sentiment was already cautious heading into the report, with at least one firm holding a "strong sell" rating on the stock.

The stock's decline was amplified by a mildly negative session for the broader market. The after-hours plunge pushed Scholastic's shares toward the lower end of their 52-week range of $25.91 to $48.07, erasing the day's regular session gains.