Publishing company John Wiley & Sons Inc. (JW.A) is set to report its second-quarter fiscal 2015 results on Dec 9, 2014. Last quarter, it posted a positive surprise of 3.7%. Let's see how things are developing for this announcement.
Factors Affecting This Quarter
Benefits from growth across all segments and restructuring activities are likely to be run down by dilutive impact of the recent acquisitions as well as lower sales of print books. To combat the decline of print media the company is gradually shifting toward digital.
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 88 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:
Nike, Inc. (NKE) has an Earnings ESP of +1.45% and a Zacks Rank #1 (Strong Buy).
Casey's General Stores, Inc. (CASY) has an Earnings ESP of +6.25% and a Zacks Rank #3.
Costco Wholesale Corp. (COST) has an Earnings ESP of +0.93% and a Zacks Rank #3.
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