Overview: John Wiley & Sons, Inc. (NYSE: WLY), a global leader in research and learning, announced its financial results for the second quarter ending October 31, 2024.
Key Financial Metrics:
| Metric | Q2 FY2025 (USD) | Q2 FY2024 (USD) | YoY Change |
|---|---|---|---|
| GAAP Revenue | $427 million | $493 million | -13.4% |
| Adjusted Revenue | $423 million | NA | +3% (Adjusted CC) |
| GAAP EPS | $0.74 | ($0.35) | +$1.09 |
| Adjusted EPS | $0.97 | NA | +36% (Adjusted CC) |
Interpretation: Wiley demonstrated resilience with a notable adjusted EPS increase of 36% year-over-year at constant currency, driven by solid performance in core segments, despite a decline in GAAP revenue attributed to divested businesses.
Segment Revenue Performance:
| Segment | Revenue (USD Million) | YoY Change | Constant Currency Change |
|---|---|---|---|
| Research | $262 million | +2% | +1% |
| Learning | $162 million | +8% | +5% |
Interpretation: The Learning segment benefited from favorable market conditions and AI licensing, with an 8% revenue increase. Research showed modest growth, overcoming declines in print and licensing revenues with strong digital performance.
Key Developments & Operational Highlights: - High-single digit revenue growth in Learning driven by AI licensing. - Continued margin enhancement and EPS growth. - Strategic divestitures completed, including Wiley University Services and Wiley Edge.
Management Commentary: Matthew Kissner, President and CEO, emphasized the importance of continuous improvement to sustain quality growth and margin expansion. He highlighted the strong start for the Learning segment and positive indications for Research in the second half, showing strength in AI and licensing opportunities.
Dividends & Share Repurchase Program: Wiley allocated $64 million towards dividends and share repurchases, marking an increase from the previous year. Notably, the dividend was raised for the 31st consecutive year.
Forward Guidance: Wiley reaffirmed its Fiscal 2025 growth outlook based on positive first-half results and favorable second-half indicators. There is confidence in achieving Fiscal 2026 targets.
In summary, Wiley's second-quarter performance reflected strategic realignments and operational strengths, positioning the company positively for future growth in key segments while delivering value to shareholders.
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