JWA (JOHN WILEY AND SONS)
- P/E: 31.4
- GAAP DILUTED YEAR-OVER-YEAR EPS GROWTH LAST QUARTER: $.15
- SECTOR: Consumer Services
- ASSETS-LIABILITIES: 3.29
- DIVIDEND: 2.28%
John Wiley and Sons is a
company that provides research resources, online project management,
and publishing services. The company is best known for its 'For
Dummies' series, and reported after the bell 6/13/17. JWA beat EPS
estimates by $.11.
A close analysis of the
earnings report released 6/13/17 shows EPS increased at a
significantly higher rate than revenue. JWA significantly cut
administrative costs, and revenue did increase, leading to a sizable
increase in EPS. The company has a large share buyback and dividend
program. While it has over three times as much assets on the book as
it does liabilities, the company does not include long-term debt in
its accounting for liabilities. JWA has approximately 15% as much
cash as it does long-term debt. The company cut its long-term debt
in half compared to the comparable quarter of last year, and its cash
reserves are 15% of their levels one year ago.
JWA was founded in 1806,
and has been publicly owned since 1962, although it was not listed on
the NYSE until 1995. Matthew Kissner is the company's new CEO, newly
appointed in May 2017. He has served in a managerial capacity at
several large companies including Pitney Bowes, Morgan Stanley, and
Citibank, since 2004. The previous CEO, Mark Allin, had served since
2015.
In recent years, Wiley has
focused on its online products. JWA's fastest growing segment is its
online products, comprised primarily of corporate learning
initiatives, online program management for higher education
institutions and businesses. The company also markets products to
aid in candidate searching for open jobs.
Wiley is valued at a
price-to-earnings multiple of 31.4. By comparison, its competitor
Scholastic trades at 33.5. Wiley's revenues in FY 2016 were lower
than in 2013, showing that the company is not growing. The same is
true of Scholastic. JWA is attempting to capitalize on the
technology market by developing its online services, and is investing
its cash in share repurchases, dividends, and cutting administrative
costs.
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