- John Wiley ( NYSE: WLY ) fell 11% on Thursday after reporting miss on both lines for first quarter alongside soft earnings forecast.
- Revenue of $487.6M (-0.2% Y/Y) missed consensus by $14M .
- Research was flat as reported, or up 4% at constant currency, driven by organic growth in Publishing and Solutions and contributions from recent acquisitions; Academic & Professional Learning revenue declined 5% as reported and 1% at constant currency; and Education Services increased 7% as reported and 11% at constant currency.
- Adjusted EBITDA declined 33% year-over-year to $63.8M.
- Operating Loss was $17M compared to operating income of $41M in year-ago quarter.
- GAAP EPS was -$0.32; Non-GAAP EPS of $0.36 missed estimates by $0.31.
- The company ended the quarter with Net Debt-to-EBITDA ratio of 2.1 while free cash flow less product development spending was a use of $114M compared to a use of $108M in the prior year.
- FY 2023 Guidance: Full year revenue is expected to be in the range of $2.17-$2.21B vs. consensus of $2.14B. When adjusted with Q1 average rates, the annual revenue for FY 2023 is estimated to be between $2.12-$2.16B.
- Adjusted EBITDA for the year to be between $425-$450M
- Free cash flow of $210-$235M
- Non-GAAP EPS of $3.70-$4.05 vs. consensus of $3.85
- “Q1 unfolded largely as expected, and we are confident in the full year outlook based on our strong, continued momentum in Research Publishing, Research Solutions, and Corporate Talent Development and the execution of our cost savings program,” said Brian Napack, President and CEO.
For further details see:
John Wiley shares fall on big bottom-line miss, dim guidance