What's in Store for John Wiley & Sons' (JW.A) Q4 Earnings?

John Wiley & Sons Inc. JW.A is scheduled to report fourth-quarter fiscal 2018 results before the opening bell on Jun 12. In the preceding quarter, the company delivered a positive earnings surprise of 3.6%. Notably, it has surpassed the Zacks Consensus Estimate in the trailing four quarters, the average beat being 15.8%.

The Zacks Consensus Estimate for current-quarter earnings is pegged at 81 cents, a penny down from the year-ago figure. Notably, the consensus estimate has been stable in the past 30 days. Analysts polled by Zacks expect revenues of $451.7 million, which is almost in line with $452.2 million reported a year ago.

Factors Influencing the Results

John Wiley & Sons is on track to provide better digital products and services to professionals, researchers and educators worldwide. The company is also undertaking plans to realign cost structure; reinvest in particular areas with growth potential along with efficiently allocating resources. To acquire a greater market share, John Wiley & Sons has taken up inorganic expansion in a big way. Over the years, the company has acquired several publishing and distribution companies along with various online service providers.

John Wiley & Sons, Inc. Price, Consensus and EPS Surprise

 

John Wiley & Sons, Inc. Price, Consensus and EPS Surprise | John Wiley & Sons, Inc. Quote

However, the company continues to face weak demand for printed books due to the shift from print to digital and increased share of rentals. In fact, John Wiley & Sons expects the overall business to be steady but softness in print book markets is likely to persist.

We note that management had earlier reaffirmed a not-so-impressive guidance for fiscal 2018. Both revenues and adjusted operating income (at constant currency) are expected to be nearly flat year over year. Adjusted earnings (at constant currency) are likely to decline in low-single digits.

Zacks Model Shows Earnings Beat Unlikely

Our proven model does not conclusively show that John Wiley & Sons is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen.

John Wiley & Sons has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell).

Stocks With Favorable Condition

Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat.

Costco Wholesale Corporation COST has an Earnings ESP of +0.10% and a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Under Armour, Inc. UAA has an Earnings ESP of +38.85% and a Zacks Rank #3.

The Kroger Co. KR has an Earnings ESP of +2.36% and a Zacks Rank #3.

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