August 18, 2008 - John Wiley & Sons, Inc. (JWA-NYSE) together with its subsidiaries, publishes print and electronic products that provide content and solutions. It produces professional and consumer books, and subscription products; scientific, technical, medical, and scholarly journals; encyclopedias; online products; and textbooks and educational materials, including integrated online teaching and learning resources for undergraduate and graduate students, teachers, and lifelong learners.

The stock trades at an all-time high of $48.65 at this writing. Like a slowly rising foothill, the stock's price map has small undulations as it moves higher and higher. With record earnings this year and projected for next, JWA appears to have the right ingredients for continued success.

Last year, earnings per share were $2.17. This year, analysts see $2.65, then $3.35 next year. The July quarter will be announced soon with expectations of 52 cents a share, up from 42 cents last year. Next quarter look for 68 cents. The company has done a great job in beating analysts' projections in the last 4 quarters, besting their estimates by 16.7%, 40.5%, 17.5%, and 40% respectively. These are the kinds of surprises investors love.

Wiley recently bought Blackwell, an English publisher. It was the main reason for solid sales and profits last year, pushing both to record levels. (Revenues hit $1.673 billion in 2007. Look for $1.78 billion this year.) With 55% of revenues coming from international sales, expect more foreign acquisitions as the company diversifies, geographically and by subject matter.

While foreign markets are doing well, not surprisingly, the U.S. is lagging. Volume and profits were down domestically in 2007. Analysts see continued sluggishness and don't expect any uptick in the U.S. markets for professional/trade, scientific/technical/medical and higher education publications. To offset these elements, the company is focusing on broadening its Web-based content, one of the hottest areas of publishing as well as the one of the most profitable.

More numbers: Market cap is $2.86 billion. Price to Sales is 1.66. Return on Equity is a solid 24.2%. Profit margin for the last 12 months is 8.82% while operating margin is 14.5%. Price to Book is 4.02. There's a 52 cent annual dividend giving a yield of 1.1%. The float is 44.3 milliion with total shares outstanding at 58.65 million outstanding. Officers and directors control 52.6% of the voting power. There's $59.3 million in cash in the bank. Current assets are below current liabilities with a current ratio of .65.

Over the last 5 years, earnings grew by 14.18% annually, on average. Sales were up by 12% annually. For the next 5 years, analysts aren't as sanguine, expecting 5% avearge annual sales growth and 8% in earnings. Of course, that's based on today's expectations. If the U.S economy recovers, Wiley will be one of the many beneficiaries, and every positive number will get bigger.

Company Web site: www.wiley.com

- Ted Allrich