What Happened?
Shares of educational publishing and media company Scholastic (NASDAQ: SCHL) fell 2.5% in the morning session after the company reported mixed fourth-quarter results that included a revenue miss and weak full-year guidance.
Although its adjusted earnings of $2.57 per share beat analyst expectations, revenue of $551.1 million fell short of projections. Furthermore, Scholastic's guidance for full-year EBITDA was approximately $151 million at the midpoint, below the $159.9 million analysts had forecasted. The lower-than-expected sales and disappointing outlook appeared to overshadow the profit beat, raising concerns for investors.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Scholastic? Access our full analysis report here.
What Is The Market Telling Us
Scholastic’s shares are somewhat volatile and have had 14 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 28 days ago when the stock gained 3.6% on the news that comments from a key Federal Reserve official bolstered hopes for an interest rate cut.
New York Federal Reserve President John Williams stated he sees “room for a further adjustment” in the near term, sparking a significant market rally. Following his remarks, the probability of the central bank cutting rates at its December meeting jumped from 39% to over 73%, according to the CME FedWatch tool. This positive sentiment provided relief to markets amid concerns over high valuations, particularly in AI-related stocks.
Scholastic is up 33.7% since the beginning of the year, and at $28.26 per share, it is trading close to its 52-week high of $30.08 from December 2025. Investors who bought $1,000 worth of Scholastic’s shares 5 years ago would now be looking at an investment worth $1,222.
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