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John Wiley & Sons (JW-A) Q3 Earnings: What's in Store?

Zacks Equity Research
Updated

John Wiley & Sons Inc. JW.A is scheduled to report third-quarter fiscal 2016 financial numbers before the opening bell on Mar 8.

In the second quarter of fiscal 2016, the company registered a negative earnings surprise of 3.7%. Notably, the company has surpassed the Zacks Consensus Estimate in three of the trailing four quarters, with an average earnings surprise of 5.2%. Here’s a discussion on the determinants of its third-quarter results:

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 stand at earnings of 76 cents. The company carries a Zacks Rank #3 (Hold), which when combined with an ESP of 0.00% makes surprise prediction difficult.

Factors Influencing this Quarter

John Wiley & Sons continues to face weak demand for printed books as is evident from the 22% decline in revenues from printed educational text books in the preceding quarter. Sales for printed books at the Professional Development segment were also down 6%. Management anticipates the overall book market to remain under pressure, at least over the near term. To counter such dismal sales, management is restructuring its books portfolio to focus on higher value content apart from cutting down on expenses. The company has a widespread global presence and hence, the strengthening of the U.S dollar will impact its performance to a certain extent.

Stocks Poised to Beat Earnings

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:

Zumiez, Inc. ZUMZ has an Earnings ESP of +2.08% and a Zacks Rank #2 (Buy).

GameStop Corp. GME has an Earnings ESP of +0.44% and a Zacks Rank #3 (Hold).

Fastenal Company FAST has an Earnings ESP of +2.27% and a Zacks Rank #3.

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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
FASTENAL (FAST): Free Stock Analysis Report
 
WILEY (JOHN) A (JW.A): Free Stock Analysis Report
 
ZUMIEZ INC (ZUMZ): Free Stock Analysis Report
 
GAMESTOP CORP (GME): Free Stock Analysis Report
 
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