Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on WOLTERS KLUWER. We currently have 5 research reports from 1 professional analysts.
|23Feb17 13:30||GNW||Wolters Kluwer Update on Shares Held in Treasury|
|22Feb17 10:00||GNW||Wolters Kluwer NV: Share Buyback Transaction Details February 16 - 21, 2017|
|22Feb17 07:00||GNW||Wolters Kluwer 2016 Full-Year Report|
|16Feb17 09:00||GNW||Wolters Kluwer NV: Share Buyback Transaction Details February 9 - 15, 2017|
|09Feb17 09:00||GNW||Wolters Kluwer NV: Share Buyback Transaction Details February 2 - February 8, 2017|
|02Feb17 09:05||GNW||Wolters Kluwer Update on Share Buyback Program|
|02Feb17 09:00||GNW||Wolters Kluwer NV: Share Buyback Transaction Details January 26 - February 1, 2017|
Frequency of research reports
Research reports on
Solid organic growth and significant improvement in profitability
22 Feb 17
Wolters Kluwer reported FY16 revenues of €4,297m, up 2% and in line with our forecast of €4,300m (+3% organically, i.e. positively accelerating from the +2% in the first 9 months, and similar to FY15) as well as a 22.1% adjusted operating margin, up 70bp from 21.4% a year earlier and slightly above expectations (as a reminder the group’s guidance was for between 21.5% and 22%; AV’s was 21.6%). This was after restructuring expenses of €29m. The adjusted net profit was €618m, above our €604m expectations, i.e. diluted adjusted EPS of €2.10, up 7% and versus our €2.04. The group generated a solid €708m FCF in FY16, up 9% at CER and ended the year with a strong financial position (net debt/EBITDA ratio of 1.7x). The proposed FY16 total dividend is up 5% to €0.79/share.
A disappointing Q3 performance
02 Nov 16
Wolters Kluwer reported 9 month 16 revenues up 2% at CER (in line with H1) and +2% organically, implying a slowdown over Q3 as H1 was up +3%. The reported revenues improved by +1%. Top-line growth was again supported by Digital & services (86% total group) which grew by 4% organically (H1 was +5%) while recurring revenues (78% of total) kept the same +4% organic trend as in the first-half. The adjusted operating margin improved by only 20bps as of end-September (was +60bp as of end-June) as the group increased its investments in new products as well as in marketing expenses. The full-year 2016 guidance was reiterated for mid-single digit EPS growth at CER with an adjusted operating margin at 21.5%-22% as restructuring costs are anticipated at more normal levels (€15-25m compared with €46m in FY15).
Satisfactory H1 16 results but still in investment mode
09 Aug 16
Wolters Kluwer reported H1 16 revenues of €2,042m, up 2% at CER and +3% organically, once again supported by digital & services (86% total group) which grew 5% organically as well as by recurring revenues (78% of total) up 4% organically. Lower restructuring expenses (€8m compared with €22m in H1 15) helped the adjusted operating margin to improve to c.20% (+60bps) and diluted adjusted EPS rose by 6% at CER to €0.88. The group is proposing a €0.19 cash interim dividend per share to be paid in September. The FY16e guidance at CER was reiterated for diluted adjusted EPS rising by mid single-digit CER with an operating margin at 21.5-22% as restructuring costs should start returning to more normal levels (€15-25m compared with €46m in FY15). Management once again highlighted that further disposals could be dilutive to margins and earnings in the near term. It nonetheless raised its guidance for adjusted free cash flow from €600-625m to €650-675m, namely reflecting the strong H1 performance (with €20m improvement in working capital requirements and lower cash tax payments).
Accelerating organic growth validating the group’s strategy
05 Nov 15
Reporting its first 9 months trading statement, Wolters Kluwer showed total revenues up 3% at CER and +3% organically (reported: +17%, mainly reflecting forex, i.e. the euro’s depreciation versus the US dollar while the positive perimeter impact was small), a reassuring acceleration after the group resumed organic revenue growth over H1 15 (+2%). As a reminder, the organic growth acceleration is key for the group as a 2% level is required for an operating margin improvement... Reflecting on the Q3 top-line improvement, the 9-month ordinary EBITA margin therefore increased at CER despite continuing investments in new products/services. The full-year outlook was reiterated (i.e. an operating margin between 21% and 21.5%, after €35m of restructuring was confirmed, of which c.70% in the Legal & Regulatory division). But management, which had already highlighted at end-July that H2 was going to face a more difficult basis of comparison (with growth investments being H2-weighted) confirmed a more challenging Q4 ahead with namely tougher comparables for some non-recurring revenues.
Confirmed return to organic growth and rising operating margin
29 Jul 15
Reporting its H1 15, Wolters Kluwer positively confirmed its return to a 2% organic revenue growth (revenue up +3% at CER and +17% on a reported basis reflecting the US$ strength). Adjusted OP reached €391m, reflecting a 120bp improvement in the margin to 19.4% and EPS rose by 5% at CER. The full-year outlook was reiterated (i.e. operating margin between 21% and 21.5%, after €35m of restructuring, mainly in the Legal & Regulatory division), although management highlighted that H2 was going to face a more difficult basis of comparison and growth investments would be H2-weighted. The €140m share buy-back was completed on 1 July and the group announced it is intending to pay interim dividends, starting with €0.18 in October 2015.
N+1 Singer - Small-cap quantitative research - New quality style screen + 11 quality focus stocks
09 Feb 17
We introduce our fourth and final style screen representing “quality”. This screens for stocks with the best combination of high returns on capital/equity, EBIT margins and operating cash-flow conversion rates. These criteria should help us monitor how strong underlying returns translate into share price performance over time and under varying market conditions. The screen selects the “best” 25 stocks from our universe of just over 500 stocks and, as usual, we focus on a shorter list of stocks we cover or otherwise know and believe to be particularly interesting. We provide brief investment summaries on these focus stocks on pages 4 – 9. We will monitor performance and refresh the screen in approximately 3-4 months time.
N+1 Singer - Morning Song 22-02-2017
22 Feb 17
CORETX (COR LN) Contract wins and new Lifestyle facility | Gooch & Housego (GHH LN) Solid Q1 trading plus earnings enhancing acquisition of StingRay Optics | NCC Group (NCC LN) Further issues in Assurance | PCI-PAL (PCIP LN) Strong H1 underpins positive outlook | UBM (UBM LN) Results | Verona Pharma (VRP LN) Phase IIa RPL554 add-on trial to tiotropium commenced
N+1 Singer - Morning Song 23-02-2017
23 Feb 17
Genus (GNS LN) Interim results: R&D step-up, disappointing ABS performance | Howden Joinery Group (HWDN LN) Prelims and net cash better than expected but conditions weaken | Oxford Pharmascience Group (OXP LN) Encouraging interim OXPzero™ Ibuprofen exploratory PK data | StatPro Group (SOG LN) Increased majority shareholding in Infovest Consulting | Wilmington Group (WIL LN) Interims slightly ahead, move to focus on 3 verticals
Another positive financial performance in FY16
23 Feb 17
As expected, RELX produced satisfactory FY 16 results, with organic revenue growth positively accelerating to +4% (FY15 at +3%). Consolidated revenues reached £6,895m (+15%) after a total forex impact of +11%, reflecting the weakness in sterling versus both the US dollar and euro (only 7.3% of sales in the UK). The group’s adjusted OP amounted to £2,114m, up 6% organically (+16% reported) and reflecting an improving margin to 30.7% from 30.5% in FY15, although slightly under our 31% expectation. The adjusted EPS increased by 8% at CER to 72.2p (AV: 71.8p). The full-year dividend is raised 21% to 35.95p (AV at 34.8p) after a final at 25.7p from 22.3p a year earlier (as a reminder, the group had announced in August a larger than usual interim dividend primarily due to end-period forex). RELX announced a new £700m share buy-back programme for FY17e (£100m completed so far) after £700m completed in FY16 and is confident to deliver in FY17e “another year of underlying revenues, profit and earnings growth”, a positive statement although as vague as usual.
Back to Hold, See More Risk than Reward in the Near Term
17 Feb 17
Ahead of prelims on March 1st, we tweak estimates and move back from Buy to Hold. We do still see good long term value in ITV, based on a resilient structural position in UK TV viewing. However, after a 30% bounce from post-Brexit lows of c160p, we now see more negatives than positives looming in the near term. The risks include NAR weakness, studios trading, management change, and content acquisitions such as ETO. We do see possible upsides from retransmission costs and from bid vulnerability – but also a strong case for likely bidders to sit on their hands for now. We lower our Target Price from 265p to 225p, and travel cautiously into these prelims.