Earnings Review and Free Research Report: John Wiley & Sons’ Q1 Results Beat Expectations

LONDON, UK / ACCESSWIRE / September 28, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on John Wiley & Sons, Inc. (NYSE: JW-A), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=JW-A, following the Company’s reporting of its first quarter fiscal 2018 (Q1 FY18) earnings results on September 07, 2017. The Hoboken, New Jersey-based Company’s revenue and adjusted EPS grew 2% and 9% y-o-y, respectively, beating market consensus estimates. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

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Earnings Reviewed

For Q1 FY18, John Wiley & Sons’ revenue came in at $411.44 million, rising from $404.29 million in Q1 FY17. The revenue figures topped market expectations of approximately $400 million. Furthermore, the Company’s revenue grew 1% y-o-y on a constant currency basis in Q1 FY18.

The book and journal publisher reported GAAP net income of $9.24 million, or $0.16 per diluted share, in Q1 FY18 compared to $31.01 million, or $0.53 per diluted share, in the prior year’s corresponding quarter. Meanwhile, the Company’s adjusted net income increased to $33.96 million, or $0.59 per diluted share, for the reported quarter from $31.49 million, or $0.54 per diluted share, in the last year’s comparable quarter, beating market consensus estimates of $0.53 per diluted share.

Operating Metrics

In Q1 FY18, John Wiley & Sons’ cost of sales were $114.79 million compared to $113.48 million in the last year’s same quarter. The Company’s adjusted operating and administrative expenses came in at $240.21 million during Q1 FY18 compared to $235.34 million in Q1 FY17. Additionally, adjusted total costs and expenses were $367.62 million for Q1 FY18 versus $361.39 million in the prior year’s comparable quarter.

During the reported quarter, GAAP operating income fell to $14.50 million, or 3.5% of revenues, from $43.81 million, or 10.8% of revenues, in Q1 FY17. Meanwhile, adjusted operating income improved to $43.83 million, or 10.7% of revenues, during Q1 FY18 from $42.89 million, or 10.6% of revenues, in the previous year’s corresponding quarter.

Segment-Wise

In Q1 FY18, John Wiley & Sons’ Research segment’s revenue increased 8% to $223.63 million from $207.22 million in Q1 FY17. In Q1 FY18, the segment’s adjusted profit also increased to $66.30 million from $60.37 million in Q1 FY17.

The Company’s Publishing segment’s revenue fell 9% to $131.28 million y-o-y on a GAAP basis in Q1FY18, while it was also down by 8% on a constant currency basis. Furthermore, the segment’s adjusted profit contribution declined to $15.86 million in Q1 FY18 from $19.67 million in the last year’s comparable quarter.

In Q1 FY18, John Wiley & Sons’ Solutions segment’s revenue rose 9% to $56.54 million on both GAAP and constant currency basis from $52.10 million in Q1 FY17. Meanwhile, the segment’s adjusted profit increased to $0.83 million in Q1 FY18 from $0.15 million in Q1 FY17.

Balance Sheet

In the three months ended July 31, 2017, John Wiley & Sons’ net cash used in operating activities totaled $81.83 million compared to net cash used in operating activities of $136.71 million in the previous year’s same period. Furthermore, the Company reported negative free cash flow less product development spending of $117.85 million in Q1 FY18 compared to negative free cash flow less product development spending of $165.48 million in the prior year’s corresponding period.

As on July 31, 2017, the Company had $84.11 million in cash and cash equivalents compared to a balance of $185.89 million as on July 31, 2016. Additionally, the Company reported a long-term debt of $551.65 million in its books of accounts as on July 31, 2017, compared to $653.00 million as on July 31, 2016.

Share Repurchases

During Q1 FY18, John Wiley & Sons’ repurchased 265,158 shares at an average cost of $52.86 per share for a total of $14 million. The Company had a balance of over 3.5 million shares under its stock repurchase authorization at the end of Q1 FY18.

Earnings Outlook

John Wiley & Sons’ management reaffirmed the Company’s outlook for the full year FY18 and expects total revenue growth to be approximately even with a low single-digit decline in adjusted EPS, excluding foreign exchange.

Stock Performance

John Wiley & Sons’ share price finished yesterday’s trading session at $53.50, marginally sliding 0.09%. A total volume of 338.85 thousand shares have exchanged hands, which was higher than the 3-month average volume of 169.32 thousand shares. The Company’s stock price advanced 0.56% in the last one month, 0.38% in the past six months, and 7.24% in the previous twelve months. Shares of the Company have a PE ratio of 33.82 and have a dividend yield of 2.39%. The stock currently has a market cap of $3.03 billion.

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