- Shares in Pearson (NYSE:PSO) have tumbled 8.5% after the company posted earnings where revenues missed estimates as testing sales fell off both in the UK and the United States.
- First-half revenue from continuing operations was off 7% to £1.87B, and fell 11% in constant currency. Sales fell 13.4% on a headline basis, accounting for the since-disposed Financial Times Group.
- Sales breakout: North America, £1.16B (down 8%, down 15% in constant currency); Core, £370M (down 5%, down 8% in constant currency); Growth, £332M (down 3%, flat in constant currency).
- Operating profit plummeted 89% in North America to £2M, while Core and Growth swung to operating losses (of £7M and £12M respectively). Penguin Random House, meanwhile, posted operating profit of £32M (up 33%).
- Still, the company reiterated full-year guidance for operating profit of £580M-£620M, and adjusted EPS of 50-55 pence.
- Press Release