Scholastic Corporation (SCHL) announced its first-quarter financial results after the market closed on Thursday, delivering a positive surprise for investors. The company reported quarterly GAAP losses of $2.21 per share, outperforming analyst expectations of a loss of $2.48. Revenue for the quarter also came in higher than anticipated, reaching $237.2 million compared to the consensus estimate of $233.5 million.
One of the key drivers behind Scholastic’s strong performance was the continued growth of its book fair business. Revenue from book fairs reached $28.8 million, representing a 5% increase from the same period last year. While book club revenue remained relatively flat at $2.7 million, the company’s consolidated trade revenue saw a 2% year-over-year increase, driven by higher foreign rights revenues. This growth was partially offset by lower frontlist sales compared to the previous year.
Scholastic CEO Peter Warwick highlighted the company’s focus on long-term growth initiatives, stating, “During our first quarter, Scholastic prepared for another important back-to-school season, as we executed on our long-term growth initiatives. In the seasonally quiet quarter for our school-based channels, first quarter’s operating loss improved modestly versus the prior year.”
Following the release of these positive results, Scholastic shares surged by 7.69% in after-hours trading, reaching $32.50 per share at the time of publication. The company’s performance reflects its ability to navigate the current market conditions and capitalize on opportunities within the education sector.
