Shares in Pearson (LON:PSON) have jumped in London in today’s session, as the blue-chip publisher reaffirmed its full-year profit guidance despite a drop in US revenue. The group’s debt for the year meanwhile is set to be in line with 2017.
As of 09:31 BST, Pearson’s share price had added 3.99 percent to 850.00p, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.21 percent higher at 7,073.99 points. The group’s shares have added more than 27 percent to their value over the past year, as compared with a near six-percent dip in the Footsie.
Pearson updates on performance
Pearson announced in a statement this morning that its total revenues were flat year-on-year in the first nine months of the year with with declines in US Higher Education Courseware offset by the rest of the company growing in aggregate.
The blue-chip publisher further said that it continued to expect to deliver adjusted operating profit of between £520 million and £560 million for the year. The company further forecast adjusted earnings per share of between 68p and 72p, as a result of one-off tax benefits.
“We are on track to return to underlying profit growth,” Pearson’s chief executive John Fallon commented in the statement.
Analysts weigh in on group’s update
City A.M. quoted Nicholas Hyett, equity analyst at Hargreaves Lansdown, as commenting that the education firm had found success by moving away from its core business of school and university textbooks.
“There’s still a lot to do before Pearson can be said to have completed its digital transformation, and a strategic shift like that comes with risks,” he pointed out, adding, however, that “after today’s numbers, a pass mark is looking increasingly achievable”.