John Wiley & Sons, Inc. (JW.A - Free Report) is expected to report second-quarter fiscal 2019 results on Dec 6. In the trailing four quarters, the company has outperformed the Zacks Consensus Estimate by average of 7.4%. However, this leading provider of knowledge and knowledge-related services delivered a negative earnings surprise of 14% in the last reported quarter.
How Are Estimates Faring?
The Zacks Consensus Estimate for earnings in the fiscal second quarter is pegged at 90 cents, reflecting a decline of 12.6% from $1.03 per share reported in the year-ago quarter. We note that the Zacks Consensus Estimate has remained stable in the past 30 days but gone down by a penny in the past 60 days.
The Zacks Consensus Estimate for revenues is $452.8 million, up 0.2% from $451.7 million in the year-ago period. We note that total revenues of this Hoboken, NJ-based company remained flat year over year in the last reported quarter.
John Wiley & Sons, Inc. Price and EPS Surprise
Factors to Consider
John Wiley & Sons reported flat sales in the fiscal first quarter due to decline in revenues from its Publishing segment. Revenues of this segment also declined in the first quarter by 2% on a reported basis. Going ahead, the company expects the segment to remain slightly challenging in fiscal 2019, owing to a decline in print media.
Additionally, the bottom line declined year over year in the last reported quarter due to an increase in tax rate and share count. This also marked the company’s first bottom-line miss after seven consecutive quarterly beats. Further, the company expects adjusted earnings to fall mid-single digit in the fiscal year with revenues projected to remain flat.
To combat the declining trend in print media, John Wiley & Sons is transforming to a more digital services-oriented company. It has resorted to aggressive restructuring to boost margins and has laid emphasis on developing its IT infrastructure. Moreover, the company is focused on building a more favorable product mix as digital services/products generate higher margins. John Wiley & Sons is also undertaking plans to realign cost structure and reinvest in areas with growth potential. These efforts are anticipated to bear fruitful results.
What the Zacks Model Unveils?
Our proven model does not conclusively show that John Wiley & Sons is likely to beat estimates this quarter. A stock needs to have both — a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP — for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
John Wiley & Sons has a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%. This makes surprise prediction difficult. We caution against stocks with a Zacks Rank #4 or 5 (Strong Sell) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.
Stocks With Favorable Combination
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Casey General Stores, Inc. (CASY - Free Report) has an Earnings ESP of +6.17% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Costco Wholeasale Corporation (COST - Free Report) has an Earnings ESP of +3.09% and a Zacks Rank #3.
Zumiez Inc. (ZUMZ - Free Report) has an Earnings ESP of +0.69% and a Zacks Rank #3.
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