February 18, 2009 - John Wiley & Sons (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.

Earnings continue to grow at Wiley, albeit at a slower pace than in the last few years. It's not exempt from the global slowdown. But catering to professionals and higher education needs helps cushion the company from selling only to consumers. In 2007, 23% of sales came from the professional/trade group. In 2006, earnings per share was $1.61, then moved to $1.62 in 2007. In 2008, they jumped to $2.17. For 2009, (fiscal year ends in April), the full year should show $2.41, then in 2010, analysts predict $3.09. Only 2 analysts cover the company. Over the past 5 years, earnings have grown annually, on average, 11.32%. One analyst believes future earnings growth will average 8% a year over the next 5.

Revenues have increased, on average, by 12% a year over the last 5. In 2006, they were $1.044 billion. This year, they should reach $1.70 billion and next year $1.8 billion. For the next 5 years, look for 5% sales growth, for an annual average. In 2007, 55% of sales were from international markets.

Neither of these growth figures is exceptional, 8% for earnings and 5% for sales. But they do show increases at a time when most other companies show decreases.

New sales were added when it acquired British publisher Blackwell in early 2007. It also contributed noticably to profitability in 2007. It has extensive relationships in book societies and is attracting new ones and expanding existing ones, giving the publisher a solid base of revenues.

Numbers: Officers and directors control 52.6% of the voting stock. Price to Book is 3.80. Market Cap is $1.95 billion. Forward P/E is 10. Operating margin for the last 12 months was 14.72% with a Profit margin of 8.22%. There are 58.65 million shares outstanding and a float of 53.29 million. Insiders own 85% of the stock. The annual dividend is 52 cents, giving a yield of 1.4%. The payout ratio is .21.

John Wiley & Sons is responding to two strong forces: the increasing readership of books and publications over the Internet and the global recession. It's putting more of its content online. It's cutting costs. It's keeping product quality high. It's holding or raising price points. While it won't be exempt from slower consumer buying, it should weather the economic storm in good shape and show quick recovery once global economies rebound.

Company Web site: www.wiley.com

- Ted Allrich