John Wiley & Sons, Inc. (NYSE:JW.A): Is It A Good Long Term Opportunity?
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
John Wiley & Sons, Inc.'s (NYSE:JW.A) announced its latest earnings update in June 2019, which suggested that the business faced a substantial headwind with earnings deteriorating by -12%. Below, I've laid out key numbers on how market analysts perceive John Wiley & Sons's earnings growth outlook over the next couple of years and whether the future looks brighter. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings.
View our latest analysis for John Wiley & Sons
Analysts' outlook for the upcoming year seems pessimistic, with earnings falling by a double-digit -19%. Over the medium term, earnings will begin to improve, rising year on year, and reaching US$199m by 2022.
While it’s useful to be aware of the growth each year relative to today’s value, it may be more beneficial to determine the rate at which the business is moving every year, on average. The advantage of this approach is that it ignores near term flucuations and accounts for the overarching direction of John Wiley & Sons's earnings trajectory over time, which may be more relevant for long term investors. To compute this rate, I've inserted a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 4.6%. This means that, we can anticipate John Wiley & Sons will grow its earnings by 4.6% every year for the next couple of years.
Next Steps:
For John Wiley & Sons, I've put together three fundamental factors you should further research:
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Valuation: What is JW.A worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether JW.A is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of JW.A? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
