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Factors Influencing John Wiley & Sons’ (JW-A) Q2 Earnings


John Wiley & Sons Inc. JW.A is scheduled to report second-quarter fiscal 2018 financial numbers before the opening bell on Dec 6, 2017. In the preceding quarter, the company delivered a positive earnings surprise of 11.3%. Notably, it has surpassed the Zacks Consensus Estimate in the trailing four quarters with an average beat of 14.8%.

What to Expect

The question lingering in investors’ minds is whether John Wiley & Sons will be able to deliver a positive earnings surprise in the quarter to be reported. The Zacks Consensus Estimate for the current quarter is pegged at 83 cents, reflecting a year-over-year increase of more than 9%. Notably, the consensus estimate has been stable in the past 30 days. Analysts polled by Zacks expect revenues of $429 million in comparison with $426 million, reported in the prior-year period.

Factors Influencing this Quarter

We believe the company’s results in the quarter to be reported are likely to be driven by strength in the Research and Solutions divisions as well as online program management and professional assessment. John Wiley & Sons remains on track with efforts to provide better digital products and services to professionals, researchers and educators worldwide. The company is also undertaking plans to realign cost structure and reinvesting in particular areas with growth potential along with efficiently allocating resources.

However, the company continues to face weak demand for printed books due to the shift from print to digital and increased share of rentals. Evidently, revenues for publishing declined 7% in fiscal 2017 with book witnessing a fall of 11% primarily due to softness in print market. In fiscal 2018, the company anticipates the overall business to be steady but softness in print book markets will continue to persist.

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

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

Zacks Model Shows Unlikely Earnings Beat

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% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 83 cents. Although, the company’s Zacks Rank #3 (Hold) increases the predictive power of ESP, we need to have a positive ESP to be confident about an earnings surprise. You may uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks Poised to Beat Earnings Estimates

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

Korn/Ferry International KFY has an Earnings ESP of +0.39% and a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Dollar General Corporation DG has an Earnings ESP of +0.89% and a Zacks Rank #2.

Dave & Buster's Entertainment, Inc. PLAY has an Earnings ESP of +2.70% and a Zacks Rank #3.

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