Breaking News
Get 40% Off 0
Is NVDA a 🟢 buy or 🔴 sell? Unlock Now

Pearson lifts annual guidance and initiates £300 million share buyback

Published Oct 30, 2023 06:10AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio

FTSE 100-listed Pearson has revised its adjusted operating profit forecast upwards to £570-£575 million, expecting total revenue growth to be at the upper end of the low to mid-single digit range. This excludes the Strategic Review businesses. The announcement came on Monday, following a period of robust performance in the first three quarters of 2021.

The firm reported a 5% increase in underlying revenue for the first three quarters of 2021, not including their online program management branch. Driving this growth were the company's Assessment and Qualifications and English Language Learning divisions, which saw sales growth of 8% and 34% respectively.

However, not all divisions saw such positive results. Pearson's Higher Education division experienced a 5% decline in sales, attributed to the pricing mix effect and a shift in revenue recognition into Q4 due to product Pearson+ expansion. Furthermore, Virtual Learning revenue took a hit with a plunge of 20%, primarily resulting from an 81% reduction in online program management income following the termination of the ASU contract.

In response to these results, Pearson launched a £300 million share buyback operation. By the end of October, the firm had already repurchased £115 million worth of shares. This move signals confidence in the company's financial health and future prospects.

InvestingPro Insights

Based on real-time data from InvestingPro, Pearson (PSON (LON:PSON)) has a market capitalization of 7941.7M USD and a P/E ratio of 22.95, indicating a high valuation relative to its earnings. The company's revenue for the last twelve months as of Q2 2023 is 4993.46M USD, with a quarterly growth of 5.09% in Q2 2023.

InvestingPro Tips suggest that Pearson has high earnings quality, with its free cash flow exceeding net income. The company has consistently increased its earnings per share and has maintained dividend payments for 32 consecutive years, demonstrating its financial strength and commitment to returning value to shareholders. Despite recent slowdowns in revenue growth, the company's liquid assets exceed its short-term obligations, and it operates with a moderate level of debt, indicating a strong financial position.

For more insights and tips, consider subscribing to InvestingPro's premium service, which offers additional tips on a variety of stocks. Currently, there are 10 additional tips available for Pearson. Check them out here.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Pearson lifts annual guidance and initiates £300 million share buyback

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your profile, will be public on and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email