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Apr 30, 2023
Wiley Q4 2023 Earnings Report
Wiley reported mixed results with revenue declining but operating income and EPS increasing. Strategic actions were announced to focus on core businesses and maximize value creation.
Key Takeaways
Wiley reported a decrease in revenue but an increase in operating income and EPS for the fourth quarter of fiscal year 2023. The company announced strategic actions to focus on its strongest businesses and drive greater profitability.
Revenue decreased by 4% to $526 million, but was down 2% at constant currency.
Operating income increased by 41% to $82 million.
EPS increased by $0.46 to $1.22.
Adjusted EBITDA increased by 23% to $137 million at constant currency.
Wiley
Wiley
Wiley Revenue by Segment
Revenue by Segment
Research Revenue
CapyFin.com Forward Guidance
Wiley's Fiscal 2024 outlook excludes businesses held for sale. Adjusted Revenue is expected to be primarily impacted by the Hindawi special issues publishing pause and continued softness in consumer and corporate spending. Adjusted EBITDA is expected to be primarily impacted by projected revenue performance, notably Hindawi, and higher employee costs. Adjusted EPS is further impacted by $0.42 of non-operational items including a higher tax rate, pension expense, and interest expense.
Positive Outlook
- Focus on core Research and Learning businesses.
- Portfolio actions to divest non-core education businesses.
- Streamlining organization and rightsizing cost structure.
- Material performance and margin improvement expected in Fiscal 2025 and Fiscal 2026.
- Company expects material performance and margin improvement in Fiscal 2025 and Fiscal 2026 from portfolio and restructuring actions.
Challenges Ahead
- Hindawi special issues publishing pause.
- Continued softness in consumer and corporate spending.
- Higher employee costs from incentive compensation reset and wage inflation.
- Higher tax rate due to a less favorable mix of earnings by country and an increase in the UK statutory rate.
- Uncertainty around the timing of divestitures and the size and scope of restructuring payments.