Publishing company, John Wiley & Sons Inc. (JW.A), is set to report its first-quarter fiscal 2015 results on Sep 9, 2014. Last quarter, it posted a positive surprise of 11.6%. Let us see how things are developing for this announcement.
Factors Affecting this Quarter
John Wiley & Sons first quarter earnings are likely to be impacted by the continuously rising raw material (paper) and investment costs. Moreover, unfavorable currency fluctuations are likely to add to the woes.
Earnings Whispers
Our proven model does not conclusively project John Wiley & Sons as likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and Zacks Rank #1 #2 or #3 for this to happen. This is not the case here as you will see below.
Zacks ESP: ESP for John Wiley & Sons is 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate stand at 54 cents.
Zacks Rank: John Wiley & Sons Zacks Rank #3 (Hold) increases the predictive power of ESP. However, we need to have a positive ESP to be confident about an earnings surprise.
We caution against stocks with a Zacks Rank #4 and #5 (Sell-rated stocks) going into an earnings announcement, especially when the company is witnessing negative estimate revisions.
Other Stocks to Consider
Here are some other companies you may want to consider as our model shows these to have the right combination of elements to post an earnings beat:
Limoneira Company (LMNR) with an Earnings ESP of +12.50% holds a Zacks Rank #2 (Buy).
Manchester United plc (MANU) has an Earnings ESP of +25.00% and a Zacks Rank #2.
Calavo Growers Inc. (CVGW) Earnings ESP stands at +8.70% and it carries a Zacks Rank #3.
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