Scholastic's (SCHL) stock surged today following the company's strong first-quarter results for fiscal Q3 2025. Profits surpassed expectations, with both EPS and EBITDA performing better than anticipated. The growth was mainly driven by the Children's Book Publishing and Distribution sector, which saw a 5% increase in sales, particularly due to growth in Book Fairs and Book Clubs. However, challenges were faced in the Education Solutions segment, with a 16% sales decline. While overall sales fell short of expectations and full-year EBITDA guidance missed forecasts, the quarter showcased both strengths and weaknesses.

The market reaction to Scholastic's performance has been significant, considering the stock's volatility with 16 moves greater than 5% over the past year. Notably, the stock took a major hit 8 months ago when it dropped 15.2% due to weak second-quarter earnings results. Despite a 1.8% increase in value since the start of the year, Scholastic's shares are still trading 44.1% below their 52-week high. Investors who purchased shares five years ago would currently see a decrease in their investment value.

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