Pearson: sees profit at lower end of range, shares drop
(CercleFinance.com) - Pearson said on Tuesday that it expects full-year profit at the lower end of its guidance range, due to difficult trading at its US college publishing unit.
Its shares were down 17.5% at 710 pence, clearly the worst performer in London's FTSE 100 index.
Pearson said that weaker-than-expected trading at its US higher education courseware business in the key selling season means that it now expects adjusted operating profit to be at the bottom of the guidance range of 590 million pounds to 640 million pounds.
"The third quarter has been significantly weaker than we expected in US Higher Education Courseware," the group said. It seems that students are turning away from print products more rapidly than anticipated.
For the first nine months of the year, Pearson expects group underlying revenue to be broadly flat, with it down 3% in North America.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
Its shares were down 17.5% at 710 pence, clearly the worst performer in London's FTSE 100 index.
Pearson said that weaker-than-expected trading at its US higher education courseware business in the key selling season means that it now expects adjusted operating profit to be at the bottom of the guidance range of 590 million pounds to 640 million pounds.
"The third quarter has been significantly weaker than we expected in US Higher Education Courseware," the group said. It seems that students are turning away from print products more rapidly than anticipated.
For the first nine months of the year, Pearson expects group underlying revenue to be broadly flat, with it down 3% in North America.
Copyright (c) 2019 CercleFinance.com. All rights reserved.