Shares of Scholastic (SCHL) surged 6.38% in after-hours trading on Thursday, following the release of its fiscal 2025 third-quarter results that showed a significantly narrower loss than expected and an expanded share repurchase program.

The children's publishing and education company reported a Q3 loss of $0.05 per share, excluding one-time items, a substantial improvement from the $0.80 loss per share in the same period last year. This result far exceeded the single analyst estimate of a $0.78 loss per share. Revenue for the quarter rose to $335.4 million, up 3.61% from $323.7 million in the previous year, although slightly below the analyst expectation of $347.7 million.

Adding to investor optimism, Scholastic expanded its share repurchase authorization to $100 million, signaling confidence in its financial position. However, the company adjusted its full-year outlook, now forecasting "modest" revenue growth for fiscal 2025, down from its previous guidance of 4% to 6% growth. The company also narrowed its Adjusted EBITDA outlook to $140 million from the previous range of $140 million to $150 million. Despite the tempered growth expectations, the market appears to be reacting positively to the improved bottom line and the enhanced share buyback program.