Scholastic’s Q4 revenue growth fell short of expectations, but strong margin discipline led to a beat on non-GAAP EPS. Cost controls and strength in school book fairs and franchises like Dog Man and Harry Potter contributed to profit outperformance. SCHL reported revenue of $551.1 million, a 1.2% YoY increase, and adjusted EPS of $2.57, beating estimates by 24.2%. EBITDA was $122.5 million, with an operating margin of 16.5%. Analyst questions on real estate sale proceeds, leverage targets, lower revenue guidance in education, book fairs’ resilience, and capital allocation priorities were addressed during the earnings call.

Looking ahead, key areas to watch include education segment growth, share repurchases enabled by the real estate sale, and momentum in key franchises and digital initiatives. SCHL currently trades at $29.03, with upcoming quarters critical for sustaining profitability and growth. For more insights, check out StockStory’s full research report for active Edge members.

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Read more at Barchart: 5 Revealing Analyst Questions From Scholastic’s Q4 Earnings Call