LONDON, UK / ACCESSWIRE / June 15, 2016 / ActiveWallSt.com announces its post-earnings coverage on John Wiley & Sons Inc. (NYSE: JW.A). The company announced its Q4 FY16 and Fiscal 2016 earnings results on Tuesday, June, 14, 2016, with Q4 FY16 adjusted earnings narrowly beating analysts' estimates. Wiley also forecasted for flat revenues and lower adjusted EPS in FY17.

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Earnings Breakdown

For the quarter ended on April 30, 2016, the global provider of knowledge and learning solutions, Wiley, reported adjusted earnings decline of 6% at $0.67 per share from $0.81 per share in the year-ago quarter. This was in line with analysts' consensus estimates. Wiley also reported GAAP earnings of $34.2 million, or $0.59 per share, for Q4 FY16, down 25% as compared to $46.9 million, or $0.79 per share, seen in Q4 FY15.

Wiley's Q4 FY16 GAAP revenue dropped 2% to $434.3 million due to the unfavourable impact of foreign exchange and the transitional impact of shifting to time-based journal subscriptions, however, revenue were slightly above the market estimate of $428.2 million. For FY16, Wiley reported adjusted earnings of $2.70 per share, down 13% on a constant currency basis as compared to FY15. FY16 GAAP earnings fell sharply by 16% to $2.48. Revenue declined 2% on a constant currency basis to $1,727.0 million. The publishing company's GAAP revenue declined 5% for Q4 FY16.

Wiley's efforts to shifting from the traditional book publisher to digital content and learning are yielding positive results, with the company now generating two-third of its revenue from digital content. The company's Corporate Learning unit reported 35% growth in Q4 FY16 and Author funded Access also grew 30%, while WileyPLUS Course Workflow and Online Program Management knowledge also reported double digit growth. However, the company continues to face weak demand for printed books. Revenues in educational text books tumbled 23%, and revenue for Research books also declined 8% in Q4 FY16.

In an effort to attract more consumers, Wiley has introduced a time-based journal subscription along with new database selections for customers. This facility allows customers to access the company's complete journal portfolio instead of specific titles. Journal Subscriptions were up 1% on a constant currency basis for calendar 2016, with approximately 95% of targeted business under contract 2016 CY2016.

Guidance

For FY17, Wiley expects growth in revenue to remain flat with adjusted EPS expected to decline by mid-single-digits, excluding foreign exchange and the favourable impact from shifting to time-based journal subscription agreements.

Share Repurchase & Dividend

Wiley bought back 216,186 shares for Q4 FY16 for a total of $10.3 million at an average of $47.52 per share. For FY16, Wiley repurchased 1.4 million shares totalling $70 million at an average cost of $48.86. As of April 30, 216 the company had nearly 747,000 shares remaining to complete its repurchase program announced in June 2013.

In June 2015, Wiley made an announcement towards the increase of its quarterly dividend by 3% to $0.30, or $1.20 on annualized basis. This is the 22nd consecutive annual increase in the company's dividend.

Stock Performance

Wiley's share declined 6.42%, closing Tuesday's trading session at $48.51, following its earnings release. On long term basis, company's stock is trending upwards with Wiley's share price up by 7.29% since the beginning of the year as compared to S&P 500 which is up 1.32%. On the short term, the company is facing downward pressure with the stock down 10.02% in the past one week.

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SOURCE: Active Wall Street

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