Shares of Scholastic Corporation (SCHL) surged 6.38% in after-hours trading on Thursday, following the release of its fiscal 2025 third-quarter results that showcased a significantly narrower loss than expected. The children's publishing and education company reported a quarterly loss of $0.05 per share, excluding one-time items, which was a substantial improvement from the $0.80 loss per share in the same period last year and far better than the analyst estimate of a $0.78 loss.

Scholastic's revenue for the quarter ended February 28 rose to $335.4 million, up 3.61% from $323.7 million in the previous year. While this figure missed the analyst consensus estimate of $347.7 million, investors appeared to focus on the company's improved bottom line and strategic initiatives. In a notable move, Scholastic expanded its share repurchase authorization to $100 million, signaling confidence in its financial position and commitment to delivering shareholder value.

Despite the positive quarterly performance, Scholastic adjusted its full-year outlook. The company now forecasts "modest" revenue growth for fiscal year 2025, down from its previous guidance of 4% to 6% growth. Additionally, Scholastic narrowed its Adjusted EBITDA outlook to $140 million from the previous range of $140 million to $150 million. Peter Warwick, President and Chief Executive Officer, commented on the results, stating that Scholastic "achieved modest revenue growth and improved operating performance" in the quarter. The market's strong positive reaction suggests that investors are optimistic about the company's cost management and potential for future growth, despite the tempered full-year expectations.