John Wiley & Sons' net income dropped 15 percent in its fiscal second quarter, with revenue falling partly due to tough market conditions for higher education textbooks and tight library budgets. The publisher lowered its full-year adjusted earnings and revenue forecasts.
The company also said Monday that Superstorm Sandy temporarily closed its Hoboken, N.J., headquarters and that about $4 million in delayed revenue will be recorded in the third quarter.
John Wiley & Sons earned $43.1 million, or 71 cents per share, for the period ended Oct. 31. That's down from $50.8 million, or 83 per share, a year earlier.
Removing impairment charges and a gain on the sale of its travel publishing program, earnings were 77 cents per share.
John Wiley & Sons said in August that it was selling its consumer travel publishing program, including the Frommer's brand, to Google Inc. The deal is valued at $22 million. 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.
Revenue fell 3 percent to $431.8 million from $447 million.
John Wiley & Sons Inc. said that library budgets continue to be limited in the areas of scientific, technical, medical and scholarly research. Its revenue was also pulled down by softness in global bookstore channels.
Commenting on the higher education textbook market, President and CEO Steve Smith said in a statement that the weaker-than-expected performance is due to lower for-profit enrollments and shifting consumer behavior.
Going forward, Smith said that the John Wiley & Sons now expects a low single-digit percentage rate increase in revenue for the year, on a currency neutral basis. The publisher previously predicted mid-single-digit revenue growth.
Adjusted earnings are now forecast in a range of about $2.95 to $3.05 per share. The prior guidance was for adjusted earnings between $3.50 and $3.55 per share.
John Wiley & Sons' stock declined $1.22, or 2.9 percent, to $41.50 in morning trading.