Adjusted earnings per share growth affected by higher costs and taxes

  • Wolters Kluwer shares fall on damped EPS rise forecast
  • Adjusted earnings per share growth to be affected by higher financing costs and taxes
  • Shares down 0.5% at EUR146.50
  • Adjusted net financing costs expected to be EUR60 million this year
  • Tax rate expected to be between 23.0% and 24.0%
  • Mid-to-high single-digit percentage diluted adjusted EPS growth for 2024
  • Restructuring charges expected to be between EUR10 million and EUR15 million
  • Net profit for 2023 was EUR1.01 billion
  • Adjusted operating profit margin rose to 26.4%
  • Revenue rose to EUR5.58 billion

Wolters Kluwer shares fell after the company announced that the rise in adjusted earnings per share this year will be dampened by higher financing costs and taxes. The company expects to book adjusted net financing costs of EUR60 million this year, up from EUR27 million in 2023. The tax rate is expected to be between 23.0% and 24.0%, compared to 22.9% in the previous year. This will result in mid-to-high single-digit percentage diluted adjusted EPS growth for 2024, compared to 12% in 2023. Wolters Kluwer also anticipates restructuring charges of between EUR10 million and EUR15 million this year. Net profit for 2023 was EUR1.01 billion, while adjusted operating profit margin rose to 26.4%. Revenue increased to EUR5.58 billion, driven by strong momentum in recurring revenues.

Factuality Level: 8
Factuality Justification: The article provides detailed information about Wolters Kluwer’s financial performance, including adjusted earnings per share, net profit, revenue, and future expectations. The information is specific and quantifiable, sourced from the company’s statements and analyst forecasts. There are no obvious signs of bias, sensationalism, or misleading information in the article.
Noise Level: 3
Noise Justification: The article provides detailed information about Wolters Kluwer’s financial performance, including earnings per share, net profit, operating profit margin, revenue, and future expectations. It also includes information about financing costs, taxes, restructuring charges, and dividends. The article stays on topic and provides evidence such as specific numbers and percentages to support its claims. However, it lacks in-depth analysis, accountability, or exploration of consequences, and it does not offer actionable insights or solutions.
Financial Relevance: Yes
Financial Markets Impacted: Wolters Kluwer shares
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses the financial performance and expectations of Wolters Kluwer, a Dutch information services company. It mentions that the company expects a rise in adjusted earnings per share to be dampened by higher financing costs and taxes. This information is relevant to financial markets and companies.
Public Companies: Wolters Kluwer (Unknown)
Key People: Nancy McKinstry (Chief Executive)

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