Pearson Cuts Guidance; Warns on Market Conditions
October 21 2015 - 03:09AM
Dow Jones News
LONDON--Pearson PLC (PSON.LN), the educational products
specialist, Wednesday said it is cutting its full-year guidance
following recent asset disposals, and warned of challenging market
conditions.
The company expects earnings per share on an adjusted basis for
2015 to be between 70 pence and 75 pence, down from a previous
range of between 75 pence and 80 pence. It said it made the
revision following the disposal of PowerSchool, FT Group and The
Economist Group, as well as movements in foreign exchange
rates.
"Given a strong competitive performance but continued
challenging market conditions, we expect our adjusted earnings per
share to be around the bottom end of [the 70-75 pence] range," it
added in a statement, adding that it is based on current exchange
rates continuing to the end of the year, no further acquisitions or
disposals, a tax rate of approximately 15% and an interest charge
of approximately 70 million pounds ($108.2 million).
On trading, it said its performance remained strong in the first
nine months of the year with share gains across major markets
including the U.S. and U.K. Still, it added it faced cyclical and
policy-related factors which affected some of its operations,
including U.S. higher education.
In the third quarter, sales fell 2% on the year. For the nine
months of 2015, sales rose 2%.
"The key cyclical and policy-related factors which have been
hurting our markets for some years have yet to improve," said Chief
Executive John Fallon.
Shares closed Tuesday at 1,188 pence.
--Write to Simon Zekaria at simon.zekaria@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
October 21, 2015 02:54 ET (06:54 GMT)
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