Publisher Pearson raises EPS by 10%
By Kate Holton |
October 26, 2010, Tuesday
|
Print Edition
Print Edition
BRITISH publishing group Pearson raised its full-year outlook again yesterday, saying it now expected adjusted earnings per share to be up 10 percent due to growth in its US College and Financial Times units.
Analysts said Pearson, which had previously predicted adjusted EPS of around 70 pence (US$1.10) or a 7 percent increase, could still surprise further, sending its shares up 0.6 percent.
The educational technology provider and Penguin Books owner said it had raised its guidance despite the uncertain macroeconomic outlook after posting a 7 percent rise in sales in the first nine months on constant exchange rates.
Sales at Penguin were up 5 percent, the education business was up 7 percent and the Financial Times group was up 11 percent, with the latter boosted by strong demand for its print, digital subscriptions and growth in advertising.
Overall adjusted operating profits were up 15 percent.
"The end of the year is a key selling season in education and consumer publishing, and both businesses face tough comparables in the fourth quarter of 2010," the group said.
"However, we are trading ahead of previous guidance and we now expect full-year adjusted earnings per share to increase by approximately 10 percent on the 2009 base of 65.4 pence."
Analysts at UBS said the strong trading had been boosted by a good performance from the US College unit and market share gains in US schools.
It said the 10 percent growth would imply an adjusted EPS of 72 pence.
"Pearson however, have a track record of being conservative and with Q4 still sizeable for College/Penguin, we would expect Pearson to again beat guidance when they report full-year results in February 2011," they said.
"We believe that consensus will ultimately move closer to our 74 pence of EPS," they said.
Analysts said Pearson, which had previously predicted adjusted EPS of around 70 pence (US$1.10) or a 7 percent increase, could still surprise further, sending its shares up 0.6 percent.
The educational technology provider and Penguin Books owner said it had raised its guidance despite the uncertain macroeconomic outlook after posting a 7 percent rise in sales in the first nine months on constant exchange rates.
Sales at Penguin were up 5 percent, the education business was up 7 percent and the Financial Times group was up 11 percent, with the latter boosted by strong demand for its print, digital subscriptions and growth in advertising.
Overall adjusted operating profits were up 15 percent.
"The end of the year is a key selling season in education and consumer publishing, and both businesses face tough comparables in the fourth quarter of 2010," the group said.
"However, we are trading ahead of previous guidance and we now expect full-year adjusted earnings per share to increase by approximately 10 percent on the 2009 base of 65.4 pence."
Analysts at UBS said the strong trading had been boosted by a good performance from the US College unit and market share gains in US schools.
It said the 10 percent growth would imply an adjusted EPS of 72 pence.
"Pearson however, have a track record of being conservative and with Q4 still sizeable for College/Penguin, we would expect Pearson to again beat guidance when they report full-year results in February 2011," they said.
"We believe that consensus will ultimately move closer to our 74 pence of EPS," they said.
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