Wiley (WLY) Exceeds Earnings Guidance

Wiley (NYSE: WLY) has reported its fourth-quarter and fiscal year 2024 results, exceeding its earnings guidance and expressing confidence in its outlook for fiscal year 2025. The company has made significant progress in its value creation plan, with two out of three non-core divestitures closed and $90 million of $130 million run-rate cost savings actioned.

In the fourth quarter, Wiley reported adjusted revenue of $441 million, representing a 4% increase, and adjusted EBITDA of $125 million, reflecting a 7% increase. Adjusted EPS for the quarter stood at $1.21, marking a 2% rise from the previous period.

For the full fiscal year 2024, Wiley recorded adjusted revenue of $1,617 million, a 1% decrease, and adjusted EBITDA of $369 million, marking a 3% decrease. Adjusted EPS for the year was $2.78, reflecting a 19% decrease from the previous year.

The company's cash from operations for the fiscal year was $208 million, a decrease of $69 million, with free cash flow standing at $114 million, down $59 million. Wiley reported a net debt-to-EBITDA ratio of 1.7, compared to 1.5 in the year-ago period.

In terms of segment performance, in the research segment, fourth-quarter revenue of $271 million was down 3%, while full-year revenue of $1,043 million was also down 3%. In the learning segment, fourth-quarter revenue of $170 million was up 18%, and full-year revenue of $574 million was up 5%.

Looking ahead to fiscal year 2025, Wiley has outlined its outlook, with adjusted revenue expected to be in the range of $1,650 to $1,690 million. The company anticipates low to mid-single-digit growth in the research segment and low-single-digit growth in the learning segment. Additionally, the company expects adjusted EBITDA in the range of $385 to $410 million and adjusted EPS in the range of $3.25 to $3.60.

Wiley has also provided insights into its free cash flow outlook, expecting it to be approximately $125 million, driven by lower restructuring payments and favorable working capital, partially offset by higher capex and a year-over-year swing in incentive compensation payments.

The company is set to hold an earnings conference call on June 13 at 10:00 am (ET) to discuss these results and outlook in more detail.

Wiley remains focused on its mission to unlock human potential and has been adapting to meet the evolving needs of its customers and partners, including researchers, students, instructors, professionals, institutions, and corporations.

For more details and to access the webcast of the earnings conference call, visit the investor relations website at investors.wiley.com. Today the company's shares have moved 13.6% to a price of $41.44. For the full picture, make sure to review John Wiley & Sons's 8-K report.

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