John Wiley & Sons 3Q adjusted profit climbs
HOBOKEN, N.J. (AP) — John Wiley & Sons said Thursday that its fiscal third-quarter net income fell 9 percent as the publisher sold some consumer publishing programs and incurred a higher technology expense. The year-ago period was also helped by a tax benefit.
For the period ended Jan. 31, the publisher earned $57.1 million, or 95 cents per share. That compares with $62.9 million, or $1.03 per share, a year earlier.
The year-ago period included an $8 million tax benefit.
In November the company announced the sale of its culinary, CliffsNotes, and Webster's New World Dictionary consumer publishing programs to Houghton Mifflin Harcourt for $11 million.
Excluding the consumer publishing programs that were sold and other items, earnings were 93 cents per share. Adjusted earnings were 88 cents per share in the prior-year period.
Revenue increased 5 percent to $472.4 million from $451.1 million, buoyed by digital revenue growth in the professional development and global education segments.
Shares of John Wiley & Sons rose $2.79, or 7.6 percent, to $39.36 in afternoon trading. Over the past year, the stock has traded between $35.62 and $51.96.
John Wiley & Sons said that it expects a fourth-quarter restructuring charge of about $25 million, mostly related to severance and other business transition-related costs.
"We are not presently in a position to provide an indication of potential elimination of positions from our existing global workforce of 5,600," the company said in a statement. "The savings will come from our operations around the world."
John Wiley & Sons expects its restructuring efforts will result in about $80 million in savings heading into fiscal 2015.
The Hoboken, N.J. publisher still expects a low single-digit increase in fourth-quarter revenue and maintained its full-year adjusted earnings forecast of $2.95 to $3.05 per share.