Wiley (WLY, Financial) has teamed up with Perplexity to enhance the integration of its content into Perplexity's generative AI search platform. This collaboration is designed to provide educational institutions with innovative ways to engage with academic resources through AI-driven search capabilities. By participating in this initiative, users at institutions that subscribe to Wiley collections will be able to seamlessly access these resources via Perplexity's platform. Initial participants in this pilot program include Texas A&M and Texas State University.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 1 analysts, the average target price for John Wiley & Sons Inc (WLY, Financial) is $60.00 with a high estimate of $60.00 and a low estimate of $60.00. The average target implies an upside of 34.56% from the current price of $44.59. More detailed estimate data can be found on the John Wiley & Sons Inc (WLY) Forecast page.
Based on the consensus recommendation from 1 brokerage firms, John Wiley & Sons Inc's (WLY, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
WLY Key Business Developments
Release Date: March 06, 2025
- Revenue: Up 1%, driven by 5% growth in research, offset by a 6% decline in learning.
- Operating Margin: Increased by 280 basis points to 14.2%.
- Adjusted EBITDA Margin: Improved by 50 basis points to 23.2%.
- Adjusted EPS: Increased by 39% due to higher adjusted operating income and a lower adjusted effective tax rate.
- Research Segment Revenue: Increased 5% in Q3 and 3% year-to-date.
- Learning Segment Revenue: Decreased 6% in Q3 but rose 4% year-to-date.
- Free Cash Flow: Expected to reach $125 million for fiscal 2025.
- AI Licensing Revenue: Generated $30 million year-to-date.
- Net Debt-to-EBITDA Ratio: 2.0 at the end of January.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- John Wiley & Sons Inc (WLY, Financial) reported a 5% growth in its Research segment, driven by AI licensing and Open Access programs.
- The company achieved a 280 basis point improvement in operating margin and a 50 basis point increase in adjusted EBITDA margin.
- Recurring revenue models, which account for nearly 75% of the Research segment, demonstrate strong health with solid pricing power.
- John Wiley & Sons Inc (WLY) has a strong balance sheet with consistent cash generation, evidenced by 31 consecutive years of dividend increases.
- The company is an early beneficiary of AI development, with emerging long-term opportunities in the corporate sector, particularly in research and development.
Negative Points
- The Learning segment experienced a 6% decline in revenue due to challenging year-over-year comparisons and softness in academic books.
- There is economic uncertainty, including consumer confidence, inflation, tariffs, policy swings, and geopolitical unrest, which could impact future performance.
- The company faces potential impacts from US government actions on research funding, although it does not anticipate any near-term effects.
- Corporate unallocated expenses increased by 9%, reflecting investments in enterprise modernization and consulting fees related to strategic initiatives.
- The company anticipates restructuring charges from its ongoing cost optimization and efficiency initiatives.
