Scholastic Corp (NASDAQ:SCHL), a global leader in children’s publishing, education, and media, stock rallies 12.50% (As on March 21, 11:25:44 AM UTC-4, Source: Google Finance) after the company reported a narrower-than-expected loss for its fiscal third quarter, driven by strong performance in its school book fairs business. The Children’s Book Publishing and Distribution segment saw a 5% increase in revenues to $203.3 million. Book Fairs revenues rose by 8% to $110.7 million, while Book Clubs revenues increased by 14% to $15.2 million. The strong performance of the Dog Man® series contributed to consolidated trade revenues of $77.4 million, in line with the prior year period. However, the Education Solutions segment faced challenges, with revenues decreasing by 16% to $57.2 million due to continued headwinds in the supplemental curriculum market. The Entertainment segment, bolstered by the acquisition of 9 Story Media Group, reported revenues of $12.8 million. The company reported modest revenue growth and improved operating results despite facing increased pressure on family and school spending on books and educational materials. The company also highlighted its strategic review of the Education Solutions division to optimize it for long-term success. Despite increasing pressure on family and school spending on books and educational materials, strong performance by School Book Fairs and Clubs, successful new titles, and the addition of 9 Story Media Group contributed to positive results.

SCHL in the third quarter of FY25 has reported the adjusted loss per share of 13 cents, significantly beating the analysts’ estimates for the adjusted loss per share of 78 cents. The company had reported the adjusted revenue growth of 4 percent to $335.4 million in the third quarter of FY25, missing the analysts’ estimates for revenue of $347.05 billion. The company also saw a significant improvement in its operating loss, which decreased by 32% to $23.9 million from $34.9 million a year ago. Adjusted EBITDA, a non-GAAP measure, increased by 183% to $6.0 million.

Additionally, Scholastic returned over $35 million to shareholders through share repurchases and dividends during the quarter. The board also increased the company’s share repurchase authorization to $100 million. The company has declared a quarterly cash dividend of $0.20 per share on the Company’s Class A and Common Stock for the fourth quarter of fiscal 2025.

Scholastic narrowed its full-year adjusted EBITDA outlook to approximately $140 million, down from its previous range of $140-$150 million. The company now forecasts “modest” revenue growth for fiscal 2025, compared to earlier guidance of 4-6% growth.