We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
John Wiley (JW.A) Q2 Earnings Top Estimates, Revenues Miss
Read MoreHide Full Article
John Wiley & Sons, Inc. released second-quarter fiscal 2020 results, wherein earnings comfortably beat the Zacks Consensus Estimate but revenues missed the same. However, revenues grew year over year, backed by strong Research Publishing & Platforms and Education Services segments. Notably, shares of the company gained 1.8% on Dec 4.
In fact, this Zacks Rank #3 (Hold) stock has gained 6.6% in the past three months compared with the industry’s growth of 4.2%.
Q2 in Detail
John Wiley’s adjusted earnings of 85 cents per share fell 4.5% year over year and 1% on a constant-currency (cc) basis. The downside can be attributable to increased interest expenses. Nonetheless, the bottom line surpassed the Zacks Consensus Estimate of 67 cents.
John Wiley & Sons, Inc. Price, Consensus and EPS Surprise
Revenues of $466.2 million advanced 3.9% year over year (up 5% at cc), though it fell short of the Zacks Consensus Estimate of $471 million. Revenues in the quarter were backed by contributions from our Learning House, Knewton and zyBooks buyouts. Excluding these, organic revenues slipped 1%. Strength in Research Publishing & Platforms and Education Services was partly countered by weakness in the Academic & Professional Learning division.
Adjusted operating income was flat year over year at $67.4 million, owing to growth and optimization initiatives. Adjusted EBITDA rose 2.7% (3% at cc) to $110 million.
Segmental Details
The Research Publishing & Platforms segment consists of Research Publishing and Research Platforms businesses. In the second quarter, revenues grew 2% year over year (up 4% at cc) to $234.7 million on higher open access publishing volumes. Research Publishing grew 2% and Research Platforms increased 3%. The segment’s adjusted contribution to profit rose 4% at cc.
The Academic & Professional Learning segment includes the Education Publishing and Professional Learning businesses. Revenues in the segment dropped 6% on a reported basis and 5% at cc to $177.7 million due to weakness in book publishing, somewhat compensated by improvements at test preparation. Further, excluding contributions from the acquisitions of zyBooks and Knewton, organic revenues declined 10% (down 9% at cc). Adjusted contribution to profit slumped 26% at cc during the quarter under review.
Management expects Academic & Professional Learning revenues to decline low-single digits in fiscal 2020 due to weakness in book publishing, particularly traditional books.
The Education Services revenues surged 80% on a reported basis and at cc. The upside was backed by gains from the Learning House buyout as well as a 10% rise in organic revenues. Also, adjusted contribution to profit from the segment improved considerably.
Other Financial Update
John Wiley ended the quarter with cash and cash equivalents of $107.7 million, long-term debt of $788.4 million and total shareholders’ equity of $1,179 million.
The company used $99.5 million of cash in operating activities in the first half of fiscal 2020. Further, it used free cash flow (net of Product Development Spending) of roughly $155.7 million. For fiscal 2020, the company still anticipates free cash flow of $210-$230 million.
During the second quarter, John Wiley bought back 334,336 shares for $15 million and paid out cash dividends of $19 million.
Guidance
Management reiterated its fiscal 2020 view. The company anticipates revenues for fiscal 2020 in the range of $1,855-$1,885 million. John Wiley still expects adjusted EBITDA of $357-$372 million and adjusted earnings per share of $2.35-$2.45. The mid-point of $2.40 stands above the current Zacks Consensus Estimate for earnings of $2.38.
Beyond Meat (BYND - Free Report) , with a Zacks Rank #2 (Buy), has an impressive earnings surprise record.
Newell Brands (NWL - Free Report) , also with a Zacks Rank #2, has a long-term earnings per share growth rate of 6%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
John Wiley (JW.A) Q2 Earnings Top Estimates, Revenues Miss
John Wiley & Sons, Inc. released second-quarter fiscal 2020 results, wherein earnings comfortably beat the Zacks Consensus Estimate but revenues missed the same. However, revenues grew year over year, backed by strong Research Publishing & Platforms and Education Services segments. Notably, shares of the company gained 1.8% on Dec 4.
In fact, this Zacks Rank #3 (Hold) stock has gained 6.6% in the past three months compared with the industry’s growth of 4.2%.
Q2 in Detail
John Wiley’s adjusted earnings of 85 cents per share fell 4.5% year over year and 1% on a constant-currency (cc) basis. The downside can be attributable to increased interest expenses. Nonetheless, the bottom line surpassed the Zacks Consensus Estimate of 67 cents.
John Wiley & Sons, Inc. Price, Consensus and EPS Surprise
John Wiley & Sons, Inc. price-consensus-eps-surprise-chart | John Wiley & Sons, Inc. Quote
Revenues of $466.2 million advanced 3.9% year over year (up 5% at cc), though it fell short of the Zacks Consensus Estimate of $471 million. Revenues in the quarter were backed by contributions from our Learning House, Knewton and zyBooks buyouts. Excluding these, organic revenues slipped 1%. Strength in Research Publishing & Platforms and Education Services was partly countered by weakness in the Academic & Professional Learning division.
Adjusted operating income was flat year over year at $67.4 million, owing to growth and optimization initiatives. Adjusted EBITDA rose 2.7% (3% at cc) to $110 million.
Segmental Details
The Research Publishing & Platforms segment consists of Research Publishing and Research Platforms businesses. In the second quarter, revenues grew 2% year over year (up 4% at cc) to $234.7 million on higher open access publishing volumes. Research Publishing grew 2% and Research Platforms increased 3%. The segment’s adjusted contribution to profit rose 4% at cc.
The Academic & Professional Learning segment includes the Education Publishing and Professional Learning businesses. Revenues in the segment dropped 6% on a reported basis and 5% at cc to $177.7 million due to weakness in book publishing, somewhat compensated by improvements at test preparation. Further, excluding contributions from the acquisitions of zyBooks and Knewton, organic revenues declined 10% (down 9% at cc). Adjusted contribution to profit slumped 26% at cc during the quarter under review.
Management expects Academic & Professional Learning revenues to decline low-single digits in fiscal 2020 due to weakness in book publishing, particularly traditional books.
The Education Services revenues surged 80% on a reported basis and at cc. The upside was backed by gains from the Learning House buyout as well as a 10% rise in organic revenues. Also, adjusted contribution to profit from the segment improved considerably.
Other Financial Update
John Wiley ended the quarter with cash and cash equivalents of $107.7 million, long-term debt of $788.4 million and total shareholders’ equity of $1,179 million.
The company used $99.5 million of cash in operating activities in the first half of fiscal 2020. Further, it used free cash flow (net of Product Development Spending) of roughly $155.7 million. For fiscal 2020, the company still anticipates free cash flow of $210-$230 million.
During the second quarter, John Wiley bought back 334,336 shares for $15 million and paid out cash dividends of $19 million.
Guidance
Management reiterated its fiscal 2020 view. The company anticipates revenues for fiscal 2020 in the range of $1,855-$1,885 million. John Wiley still expects adjusted EBITDA of $357-$372 million and adjusted earnings per share of $2.35-$2.45. The mid-point of $2.40 stands above the current Zacks Consensus Estimate for earnings of $2.38.
Don’t Miss These Solid Consumer Staple Stocks
Boston Beer (SAM - Free Report) , with a Zacks Rank #1 (Strong Buy), has a long-term earnings per share growth rate of 10%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Beyond Meat (BYND - Free Report) , with a Zacks Rank #2 (Buy), has an impressive earnings surprise record.
Newell Brands (NWL - Free Report) , also with a Zacks Rank #2, has a long-term earnings per share growth rate of 6%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>