uploads/2015/12/jw.a-pm.jpg

John Wiley & Sons’ Revenue and Income Fall

By

Updated

Price movement of John Wiley & Sons

John Wiley & Sons (JW.A) has a market capitalization of $2.6 billion. Its YTD (year-to-date) price movement has been a mix of rises and falls in 2015.

After its fiscal 2Q16 earnings report, JW.A fell 10.4% to close at $45.09 per share as of December 8, 2015. The stock’s price movements on a weekly, monthly, and YTD basis are -13.1%, -15.0%, and -22.6%, respectively.

Technically, JW.A has broken its support and is trading below all of its moving averages. Currently, JW.A is trading 12.2% below its 20-day moving average, 11.8% below its 50-day moving average, and 17.4% below its 200-day moving average.

The PowerShares S&P MidCap Low Volatility ETF (XMLV) invests 1.4% of its holdings in John Wiley & Sons. The ETF tracks a volatility-weighted index of the 80 least-volatile S&P MidCap 400 companies. The YTD price movement of XMLV is 6.6% as of December 7, 2015.

Competitors of John Wiley & Sons and their market capitalizations are as follows:

  • Thomson Reuters (TRI) — $30.2 billion
  • CBS (CBS) — $23.6 billion
  • Pearson (PSO) — $9.4 billion
  • Scholastic (SCHL) — $1.4 billion
Article continues below advertisement

Performance of John Wiley & Sons in fiscal 2Q16

John Wiley & Sons reported fiscal 2Q16 revenue of $433.4 million, a fall of 9.1% when compared to its revenue of $477.0 million in fiscal 2Q15. Revenues from the company’s research, professional development, and education segments fell by 10.0%, 6.1%, and 10.0%, respectively, in fiscal 2Q16, compared to revenues in fiscal 2Q15. JW.A reported restructuring charges of $3.7 million in fiscal 2Q16.

The company’s operating income fell by 20.7% in fiscal 2Q16 compared to the previous year’s period. Its net income and EPS (earnings per share) fell to $43.6 million and $0.74, respectively, in fiscal 2Q16, compared to its net income and EPS of $53.8 million and $0.90, respectively, in fiscal 2Q15.

JW.A’s adjusted net income and adjusted EPS fell to $45.9 million and $0.78, respectively, in fiscal 2Q16, falls of 14.7% and 13.3%, respectively, compared to the previous year’s period.

Meanwhile, the company’s cash and cash equivalents rose by 55.0%, and its inventories fell by 17.9% in fiscal 2Q16 compared to the previous year’s period. Its current ratio and debt-to-equity ratio rose to 1.04 and 1.7, respectively, in fiscal 2Q16, compared to its current and debt-to-equity ratios of 1.02 and 1.5, respectively, in fiscal 2Q15.

JW.A repurchased 638,000 shares in fiscal 2Q16 at a cost of $32.0 million, an average of $50.15 per share. Approximately 1.3 million shares remain in the current authorization program.

The company announced its acquisition of Chartered Financial Analyst content and AnalystSuccess.com from The American College of Financial Services.

Projections

John Wiley & Sons has reaffirmed its fiscal 2016 adjusted EPS for flat performance, but it has lowered its revenue outlook from low single-digit growth to flat growth. Revenue and adjusted EPS are on a constant-currency basis and exclude the adverse transitional impact of shifting to time-based journal subscription agreements.

Visit Market Realist’s Media page for an in-depth fundamental analysis of the sector.

Advertisement

More From Market Realist