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Apr 30, 2022
Wiley Q4 2022 Earnings Report
Wiley's fourth quarter results reflected revenue growth and increased operating income.
Key Takeaways
Wiley's Q4 2022 results showed a revenue increase of 2% to $546 million and a 14% rise in operating income to $58 million. EPS also increased by 4% to $0.76. Adjusted EPS decreased by 6% to $1.08.
Revenue increased by 2% to $546 million.
Operating Income increased 14% to $58 million.
EPS increased by 4% to $0.76.
Adjusted EPS decreased by 6% to $1.08.
Wiley
Wiley
Wiley Revenue by Segment
Revenue by Segment
Research Revenue
CapyFin.comLearning Revenue
CapyFin.com Forward Guidance
Wiley provided its Fiscal Year 2023 outlook, anticipating mid-single digit revenue growth at constant currency driven by Research and Education Services. Earnings gains from revenue growth are expected to be offset by wage inflation and growth investments. Adjusted EPS performance is expected to be adversely impacted by non-operational items.
Positive Outlook
- Revenue: The Company anticipates mid-single digit revenue growth at constant currency driven by Research and Education Services.
- Wiley expects positive cash earnings
- Wiley expects lower incentive payouts for Fiscal 2022 performance compared to prior year
- Wiley expects gains from revenue growth to be offset by wage inflation and growth investments in Research and Corporate Talent Development.
- Wiley’s adjusted effective tax rate is expected to be 22-23% in Fiscal 2023, up from 20% in Fiscal 2022.
Challenges Ahead
- Earnings: Wiley expects gains from revenue growth to be offset by wage inflation and growth investments in Research and Corporate Talent Development.
- Adjusted EPS performance is expected to be adversely impacted by 35-cents of non-operational items such as higher interest expense, higher tax expense, and lower pension income.
- Wiley’s adjusted effective tax rate is expected to be 22-23% in Fiscal 2023, up from 20% in Fiscal 2022. This is primarily due to an anticipated less favorable mix of earnings by country and an increase in the UK statutory rate. Fiscal 2022 also benefitted from certain non-recurring tax benefits.
- Free Cash Flow: Wiley expects positive cash earnings and lower incentive payouts for Fiscal 2022 performance compared to prior year to be offset by higher cash taxes, interest and capex ($115 to $125 million vs. $116 million in Fiscal 2022).
- Foreign Exchange Impact: With Wiley generating 47% of its revenue from outside the US, the Company’s reported results are adversely impacted by a strengthening US dollar, particularly in relation to the Euro and the British pound.
Revenue & Expenses
Visualization of income flow from segment revenue to net income