John Wiley & Sons (NYSE:WLY) Sets New 12-Month Low on Disappointing Earnings

Key Points

• John Wiley & Sons' stock reached a new 52-week low of $36.10 after reporting weaker than expected quarterly earnings, with earnings per share at $0.49, just below analysts' estimates.
• The company has announced a quarterly dividend increase to $0.355 per share, providing an annualized yield of 3.8%, despite a high dividend payout ratio of 92.81%.
• John Wiley & Sons has authorized a $250 million stock buyback plan, indicating confidence from the board regarding the company's stock valuation.

John Wiley & Sons, Inc. (NYSE:WLY - Get Free Report) shares reached a new 52-week low on Thursday after the company announced weaker than expected quarterly earnings. The company traded as low as $36.10 and last traded at $36.45, with a volume of 137232 shares changing hands. The stock had previously closed at $39.77.

The company reported $0.49 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.50 by ($0.01). John Wiley & Sons had a return on equity of 27.31% and a net margin of 5.82%.The firm had revenue of $396.80 million during the quarter, compared to analysts' expectations of $375.00 million. During the same period in the prior year, the firm posted $0.47 earnings per share. John Wiley & Sons's revenue for the quarter was down 1.7% compared to the same quarter last year. John Wiley & Sons has set its FY 2026 guidance at 3.900-4.350 EPS.

John Wiley & Sons Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, July 24th. Stockholders of record on Tuesday, July 8th were issued a dividend of $0.355 per share. This represents a $1.42 dividend on an annualized basis and a dividend yield of 3.4%. This is a boost from John Wiley & Sons's previous quarterly dividend of $0.35. The ex-dividend date of this dividend was Tuesday, July 8th. John Wiley & Sons's dividend payout ratio is presently 79.78%.

John Wiley & Sons announced that its Board of Directors has authorized a share repurchase plan on Thursday, June 26th that authorizes the company to buyback $250.00 million in outstanding shares. This buyback authorization authorizes the company to purchase up to 10.7% of its shares through open market purchases. Shares buyback plans are usually a sign that the company's board of directors believes its shares are undervalued.

Analysts Set New Price Targets

Separately, Wall Street Zen lowered shares of John Wiley & Sons from a "strong-buy" rating to a "buy" rating in a report on Saturday.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. EverSource Wealth Advisors LLC lifted its position in John Wiley & Sons by 519.8% during the second quarter. EverSource Wealth Advisors LLC now owns 564 shares of the company's stock valued at $25,000 after purchasing an additional 473 shares during the period. Northwestern Mutual Wealth Management Co. acquired a new position in John Wiley & Sons during the first quarter valued at $29,000. Trust Co. of Toledo NA OH acquired a new position in John Wiley & Sons during the second quarter valued at $31,000. Whittier Trust Co. acquired a new position in John Wiley & Sons during the second quarter valued at $33,000. Finally, State of Wyoming acquired a new position in John Wiley & Sons during the fourth quarter valued at $46,000. 73.94% of the stock is currently owned by institutional investors and hedge funds.

John Wiley & Sons Stock Up 3.5%

The company has a market capitalization of $2.20 billion, a price-to-earnings ratio of 23.18 and a beta of 1.02. The business's 50-day moving average is $40.36 and its 200-day moving average is $41.61. The company has a quick ratio of 0.61, a current ratio of 0.65 and a debt-to-equity ratio of 1.12.

John Wiley & Sons Company Profile

John Wiley & Sons, Inc engages in the provision of research and learning materials. It operates through the following segments: Research, Learning, and Held for Sale or Sold. The Research segment consists of research publishing and research solutions. The Learning segment includes academic and professional reporting lines and consists of publishing and related knowledge solutions.