John Wiley & Sons Inc Class B (NYSE:WLYB) stock rose 4.74% (As on June 16, 11:08:43 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 23. Net Cash Provided by Operating Activities (Full Year) was $277 million compared to $339 million in the prior year period. This is primarily due to higher restructuring payments (+$21 million), higher interest expense (+$18 million), and lower cash earnings. Free Cash Flow less Product Development Spending (Full Year) was $173 million compared to $223 million in the prior year period, primarily due to higher restructuring payments, higher interest payments, and lower cash earnings, offsetting lower capex.

YB in the fourth quarter of FY 23 has reported the adjusted earnings per share of $1.45, beating the analysts’ estimates for the adjusted earnings per share by 46 cents. The company had reported 2 percent fall in the adjusted revenue to $526.1 million in the fourth quarter of FY 23, beating the analysts’ estimates for revenue by $4.9 million. Research fourth quarter revenue of $280 million was down 6%, or 5% at constant currency mainly due to the Hindawi publishing disruption and macroeconomic headwinds impacting our corporate offerings. Hindawi’s special issues program are still suspended due to the presence in certain special issues of compromised articles. To date, Wiley has closed four Hindawi journals and retracted over 1,700 articles. Academic fourth quarter revenue of $183 million was down 3%, or 2% at constant currency due to modest declines in both Academic Publishing and University Services. Talent fourth quarter revenue of $63 million was up 8%, or 12% at constant currency due to growth in placements and assessments.

Additionally, the Company raised its dividend for the 29th consecutive year in Fiscal 2023. For the year, Wiley utilized $77 million for dividends and $35 million to repurchase 832,000 shares at an average cost per share of $42.07. This compares to 544,000 shares repurchased in the prior year. There were no material acquisitions in Fiscal 2023.

Meanwhile, the company is divesting non-core education businesses, including University Services (known as online program management), Wiley Edge (formerly Talent Development) and CrossKnowledge. These assets will be reported as “businesses held for sale” starting in Q1 2024. In Q4 2023, Wiley divested its test prep and Advancement Courses lines in Academic.