Pearson Q3 Sales Down; Now Sees Bottom End Of FY Earnings View Range

(RTTNews) - British publishing and education company Pearson plc (PSO, PSON.L) reported Wednesday that for the third quarter, sales were down 2 percent in headline terms, down 5 percent at constant exchange rates and down 4 percent in underlying terms.

For the nine months, sales were up 2 percent in headline terms and down 2 percent at constant exchange rates and in underlying terms.

The company said its competitive performance remained strong in the first nine months of the year with share gains across major markets including US higher education courseware, US school courseware and UK qualifications.

Looking ahead for the year, citing a strong competitive performance but continued challenging market conditions, the company now expects adjusted earnings per share to be around the bottom end of the range of 70 pence to 75 pence.

The given outlook was reduced by about 5 pence from earlier forecast of 75 pence and 80 pence reflecting the disposal of PowerSchool, FT Group and The Economist Group, as well as movements in exchange rates.

Pearson's chief executive John Fallon said, "The key cyclical and policy-related factors which have been hurting our markets for some years have yet to improve. We are performing well competitively and gaining share across many areas of our business. We continue to manage our costs tightly while investing in new products and services to inspire the next generation of students."