How The Wheels Came Off John Wiley & Sons's Bus

Just the facts, Fool.

Seth Jayson
Seth Jayson
Sep 13, 2012 at 12:00AM
Other

John Wiley & Sons (NYSE: JWA) reported earnings on Sep. 10. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended July 31 (Q1), John Wiley & Sons missed estimates on revenues and whiffed on earnings per share.

Compared to the prior-year quarter, revenue shrank and GAAP earnings per share dropped significantly.

Margins shrank across the board.

Revenue details
John Wiley & Sons reported revenue of $410.7 million. The two analysts polled by S&P Capital IQ predicted net sales of $439.2 million on the same basis. GAAP reported sales were 4.5% lower than the prior-year quarter's $430.1 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.52. The two earnings estimates compiled by S&P Capital IQ predicted $0.73 per share. GAAP EPS of $0.60 for Q1 were 27% lower than the prior-year quarter's $0.82 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 69.0%, 80 basis points worse than the prior-year quarter. Operating margin was 10.7%, 330 basis points worse than the prior-year quarter. Net margin was 8.8%, 300 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $449.8 million. On the bottom line, the average EPS estimate is $0.90.

Next year's average estimate for revenue is $1.80 billion. The average EPS estimate is $3.38.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on John Wiley & Sons is outperform, with an average price target of $53.75.

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