John Wiley & Sons (JW-A): What To Expect In Q1 Earnings?

John Wiley & Sons Inc. JW.A is scheduled to report first-quarter fiscal 2017 financial numbers before the opening bell on Sep 7, 2016.

The company registered a positive earnings surprise of 1.5% in the final quarter of fiscal 2016. Notably, it has lagged the Zacks Consensus Estimate in the trailing two quarters, with an average miss of 1.1%. Here’s a discussion on the determinants of first-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 61 cents. The company carries a Zacks Rank #4 (Sell). We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Factors Influencing this Quarter

Declining print book demand and a strengthening U.S. dollar continue to hamper the company’s performance. In the previous quarter, revenues from print book declined 23%. We believe that the overall book market will continue to be under pressure in the near future. In order to battle this decline, management is overhauling its books portfolio to focus on higher value content and optimize expenses accordingly.

The company’s top line had missed the Zacks Consensus Estimate in five out of the six quarters. Rising technology costs as well as higher expenses incurred to grow its share in Online Program Management and Corporate Learning may dent the company’s earnings in the to-be-reported quarter.

Stocks Poised to Beat Earnings Estimates

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:

Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY) has an Earnings ESP of +2.27% and a Zacks Rank #3 (Hold).

Korn/Ferry International (NYSE:KFY) has an Earnings ESP of +1.89% and a Zacks Rank #3.

Casey's General Stores, Inc. (NASDAQ:CASY) has an Earnings ESP of +3.35% and a Zacks Rank #3.

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