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JWA STOCK WRITE UP


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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