Educational Development (NASDAQ:EDUC) Posts Quarterly Earnings Results

Educational Development (NASDAQ:EDUC) issued its quarterly earnings results on Tuesday. The company reported ($0.37) earnings per share (EPS) for the quarter, FiscalAI reports. The company had revenue of $4.18 million for the quarter. Educational Development had a negative return on equity of 13.61% and a net margin of 16.10%.

Here are the key takeaways from Educational Development’s conference call:

• Revenue and active brand partners declined sharply in the fourth quarter, with net revenues falling to $4.2 million from $6.6 million and average active PaperPie brand partners dropping to 4,500 from 9,400 year over year.
• The company reported a net loss of $3.1 million in Q4, including a $1.0 million tax expense driven by a one-time $1.5 million valuation allowance adjustment.
• Management is in the middle of a turnaround plan centered on inventory replenishment, including new titles and best-selling out-of-stock items that are now starting to arrive and are expected to support future sales.
• The March join special added almost 1,400 new brand partners, which management said shows renewed interest in the business and could help improve recruiting and sales momentum in fiscal 2027.
• EDC ended the year with $7 million of cash flow from inventory reductions, reduced inventory to $37.7 million, and secured a new $2 million line of credit with no covenants to support growth.

Educational Development Stock Down 0.3%

Shares of NASDAQ:EDUC opened at $1.49 on Wednesday. The firm has a market cap of $12.68 million, a P/E ratio of 3.17 and a beta of 1.02. Educational Development has a 12-month low of $1.01 and a 12-month high of $1.84. The business has a fifty day simple moving average of $1.37 and a 200 day simple moving average of $1.36.

Wall Street Analyst Weigh In

Separately, Weiss Ratings raised Educational Development from a “hold (c-)” rating to a “hold (c)” rating in a research report on Monday, May 11th. One research analyst has rated the stock with a Hold rating, According to MarketBeat, Educational Development has a consensus rating of “Hold”.

Institutional Trading of Educational Development

A number of large investors have recently bought and sold shares of EDUC. Citadel Advisors LLC acquired a new stake in Educational Development during the 3rd quarter worth about $36,000. Bridgeway Capital Management LLC purchased a new stake in Educational Development in the 4th quarter valued at $29,000. Finally, State Street Corp raised its position in Educational Development by 106.0% in the 4th quarter. State Street Corp now owns 31,876 shares of the company’s stock valued at $42,000 after buying an additional 16,400 shares during the last quarter. 19.60% of the stock is currently owned by institutional investors and hedge funds.

Educational Development Company Profile

Educational Development Corporation, through its subsidiaries, engages in the direct marketing and digital retailing of educational and inspirational reading materials, including books, Bibles, devotionals, and related gift items. The company’s product portfolio extends to children’s literature, music, and home décor, targeting consumers in the faith-based and human-interest segments. Products are sold under proprietary brands across multiple online and catalog platforms.

Central to the company’s operations are its e-commerce websites and print catalogs, which support both retail and wholesale distribution channels.