John Wiley & Sons Meets on the Top Line, Misses Where It Counts

John Wiley & Sons (NYS: JW.A) reported earnings on March 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Jan. 31 (Q3), John Wiley & Sons met expectations on revenues and missed estimates on earnings per share.

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

Gross margins shrank, operating margins grew, and net margins increased.

Revenue details
John Wiley & Sons reported revenue of $451.1 million. The two analysts polled by S&P Capital IQ hoped for a top line of $453.1 million on the same basis. GAAP reported sales were 0.7% higher than the prior-year quarter's $447.9 million.

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

EPS details
Non-GAAP EPS came in at $0.91. The three earnings estimates compiled by S&P Capital IQ averaged $0.95 per share on the same basis. GAAP EPS of $1.03 for Q3 were 39% higher than the prior-year quarter's $0.74 per share.

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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 68.5%, 70 basis points worse than the prior-year quarter. Operating margin was 17.4%, 180 basis points better than the prior-year quarter. Net margin was 13.9%, 370 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $454.6 million. On the bottom line, the average EPS estimate is $0.68.

Next year's average estimate for revenue is $1.79 billion. The average EPS estimate is $3.12.

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 $52.25.

At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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