Latest news with #JohnWiley
Yahoo
3 days ago
- Business
- Yahoo
John Wiley & Sons Inc (WLY) Q4 2025 Earnings Call Highlights: Strong Revenue Growth and ...
Revenue Growth: Achieved revenue growth in both segments, driven by recurring revenue models and strong growth in Open Access. AI Licensing Revenue: Total AI licensing revenue of $40 million for the year. Adjusted Operating Margin: Improved by 300 basis points. Adjusted EBITDA Margin: Increased by 120 basis points. Free Cash Flow: Up 10% to $126 million, with a reaffirmed target of $200 million for fiscal '26. Share Repurchases: Increased by 34% to $60 million. Dividend Yield: Currently at 3.5%. University Services Divestiture: Secured $120 million in cash proceeds. EPS Guidance: Exceeded EPS guidance range for the second year in a row. Research Submissions Growth: 19% submissions growth rate and 8% output growth in fiscal '25. Learning Segment Revenue: AI licensing generated $29 million in learning revenue. Adjusted EBITDA Margin for Learning: Improved by 250 basis points to 37.4%. Net-Debt-to-EBITDA Ratio: 1.8 at the end of April. Adjusted EPS: Expected to be in the range of $3.90 to $4.35 for fiscal '26. Warning! GuruFocus has detected 4 Warning Signs with TEN. Release Date: June 17, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. John Wiley & Sons Inc (NYSE:WLY) reported revenue growth and margin improvement in both segments, with a 300 basis point improvement in adjusted operating margin. The company achieved strong growth in Open Access driven by global demand to publish, with a 19% submissions growth rate and 8% output growth in fiscal '25. AI licensing revenue reached $40 million, with significant partnerships formed with major tech companies for AI model training. Free cash flow increased by 10% to $126 million, and the company reaffirmed its $200 million target for fiscal '26. The company completed divestitures, securing $120 million in cash proceeds from the University Services divestiture to reduce debt and interest expenses. The learning segment experienced a 5% revenue decline in Q4 due to a large AI agreement in the prior year and retail channel softness in professional publishing. Adjusted revenue was flat in Q4, with some softness in ancillary and print products, including back files and digital archives. The company faces uncertainty in the AI market, which is rapidly evolving and not as predictable as desired. Corporate expenses rose modestly due to enterprise modernization, although they are expected to decrease in fiscal '26. The macroeconomic environment remains uncertain, with potential headwinds from geopolitical risks and policy volatility. Q: Can you discuss the outlook for organic growth excluding AI, and what factors might lead to higher or lower growth within your guidance range? A: Matthew Kissner, President & CEO, explained that AI is a rapidly evolving market, making it unpredictable. Christopher Caridi, Interim CFO, noted that Open Access revenues and submissions are strong, and they expect continued growth in fiscal '26. Jay Flynn, EVP & GM of Research & Learning, added that they have good visibility into calendar year '25 renewals, which were favorable, providing confidence in their guidance. Q: What is the potential contribution of recurring revenue from AI partnerships in fiscal '26 and beyond? A: Matthew Kissner stated that the AI market is nascent, with corporations fine-tuning AI models using Wiley's data. Jay Flynn added that the $1 million in AI revenue is just the start, with potential for high-margin, recurring revenue models similar to SaaS, driven by partnerships with tech and AI-native companies. Q: With article submissions up 19% and output up 8%, do you expect these growth rates to converge over time? A: Jay Flynn explained that submission growth supports subscription revenue value, with a six to eight-month lag between submissions and publications. While there's no direct correlation between submissions and output annually, they aim to drive submission volume to maintain value for subscribers and authors. Q: How are you planning and budgeting given the current macroeconomic and funding environment? A: Matthew Kissner noted that internal indicators remain strong, despite external uncertainties. Jay Flynn emphasized a balanced approach with discipline and flexibility, considering geopolitical risks and funding trends. The business's global diversification and digital, recurring revenue base provide a strong planning foundation. Q: With the $120 million from the University Services divestment, will you focus on deleveraging or more aggressive buybacks? A: Christopher Caridi stated that while returning cash to shareholders is important, they aim for a balanced approach, maintaining the ability to invest in the business. Share buybacks will be opportunistic, depending on market conditions. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
4 days ago
- Business
- Yahoo
Wiley's (NYSE:WLY) Q1 Sales Beat Estimates
Academic publishing company John Wiley & Sons (NYSE:WLY) reported revenue ahead of Wall Street's expectations in Q1 CY2025, but sales fell by 5.5% year on year to $442.6 million. Its GAAP profit of $1.25 per share was 16.8% above analysts' consensus estimates. Is now the time to buy Wiley? Find out in our full research report. Revenue: $442.6 million vs analyst estimates of $435 million (5.5% year-on-year decline, 1.7% beat) EPS (GAAP): $1.25 vs analyst estimates of $1.07 (16.8% beat) Adjusted EBITDA: $125.6 million vs analyst estimates of $125.3 million (28.4% margin, in line) Operating Margin: 17.3%, in line with the same quarter last year Free Cash Flow Margin: 28.7%, down from 35.1% in the same quarter last year Market Capitalization: $2.00 billion 'We delivered another strong year of execution as we met or exceeded our financial commitments, drove profitable growth in our core, expanded margins and free cash flow, and extended further into the corporate market through AI licensing and partnership, science analytics, and knowledge services,' said Matthew Kissner, President and CEO. With roots dating back to 1807 when Charles Wiley opened a small printing shop in Manhattan, John Wiley & Sons (NYSE:WLY) is a global academic publisher that provides scientific journals, books, digital courseware, and knowledge solutions for researchers, students, and professionals. A company's long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. With $1.68 billion in revenue over the past 12 months, Wiley is a mid-sized business services company, which sometimes brings disadvantages compared to larger competitors benefiting from better economies of scale. As you can see below, Wiley's revenue declined by 1.7% per year over the last five years, a rough starting point for our analysis. We at StockStory place the most emphasis on long-term growth, but within business services, a half-decade historical view may miss recent innovations or disruptive industry trends. Wiley's recent performance shows its demand remained suppressed as its revenue has declined by 8.9% annually over the last two years. This quarter, Wiley's revenue fell by 5.5% year on year to $442.6 million but beat Wall Street's estimates by 1.7%. We also like to judge companies based on their projected revenue growth, but not enough Wall Street analysts cover the company for it to have reliable consensus estimates. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after subtracting all core expenses, like marketing and R&D. Wiley has done a decent job managing its cost base over the last five years. The company has produced an average operating margin of 11.8%, higher than the broader business services sector. Looking at the trend in its profitability, Wiley's operating margin rose by 1.9 percentage points over the last five years, showing its efficiency has improved. This quarter, Wiley generated an operating margin profit margin of 17.3%, in line with the same quarter last year. This indicates the company's overall cost structure has been relatively stable. We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Wiley's full-year EPS flipped from negative to positive over the last five years. This is encouraging and shows it's at a critical moment in its life. In Q1, Wiley reported EPS at $1.25, up from $0.46 in the same quarter last year. This print easily cleared analysts' estimates, and shareholders should be content with the results. We also like to analyze expected EPS growth based on Wall Street analysts' consensus projections, but there is insufficient data. We were impressed by how significantly Wiley blew past analysts' EPS expectations this quarter. We were also happy its revenue outperformed Wall Street's estimates. Zooming out, we think this was a good print with some key areas of upside. The stock remained flat at $40.72 immediately after reporting. Is Wiley an attractive investment opportunity right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
Washington Post
4 days ago
- Business
- Washington Post
John Wiley & Sons: Fiscal Q4 Earnings Snapshot
HOBOKEN, N.J. — HOBOKEN, N.J. — John Wiley & Sons Inc. (WLY) on Tuesday reported net income of $68.1 million in its fiscal fourth quarter. The Hoboken, New Jersey-based company said it had profit of $1.25 per share. Earnings, adjusted for one-time gains and costs, came to $1.37 per share. The publisher posted revenue of $442.6 million in the period.
Yahoo
5 days ago
- Business
- Yahoo
Wiley Earnings: What To Look For From WLY
Academic publishing company John Wiley & Sons (NYSE:WLY) will be reporting earnings this Tuesday before the bell. Here's what to expect. Wiley beat analysts' revenue expectations by 0.9% last quarter, reporting revenues of $404.6 million, down 12.2% year on year. It was a very strong quarter for the company, with a solid beat of analysts' EPS estimates and an impressive beat of analysts' full-year EPS guidance estimates. Is Wiley a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Wiley's revenue to decline 7.1% year on year to $435 million, improving from the 11% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.27 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Wiley has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 10.9% on average. Looking at Wiley's peers in the media & entertainment segment, some have already reported their Q1 results, giving us a hint as to what we can expect. EchoStar's revenues decreased 3.6% year on year, meeting analysts' expectations, and Sinclair reported a revenue decline of 2.8%, in line with consensus estimates. EchoStar traded down 15.4% following the results while Sinclair was also down 4.8%. Read our full analysis of EchoStar's results here and Sinclair's results here. Investors in the media & entertainment segment have had fairly steady hands going into earnings, with share prices down 1.8% on average over the last month. Wiley is down 13.8% during the same time and is heading into earnings with an average analyst price target of $60 (compared to the current share price of $37.73). Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
10-06-2025
- Business
- Bloomberg
Academic Publishers Sign AI Deals as Trump Cuts Research Funding
Academic publishers are rushing to sign licensing deals with artificial intelligence companies, carving out a new revenue stream as US research funding cuts dim their outlook. Informa Plc 's Taylor & Francis signed a $10 million deal with Microsoft Corp. last year to provide the tech giant access to part of its library to train large language models, or LLMs. Bloomsbury Publishing Plc is looking to 'monetize academic content through AI deals,' it said in its latest set of results, while John Wiley & Sons Inc. announced partnerships with Amazon Web Services and Perplexity earlier this year.
