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Why Are Pearson Shares Trading Higher Premarket?

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  • Pearson PLC (NYSE: PSO) bumped up its full-year profit guidance for 2021 after significant gains in testing and qualification services.

  • The London-based education and training group's full-year adjusted operating profit would increase by about a third from 2020 to ~385 million pounds and ahead of consensus expectations.

  • Earlier, Pearson said it remains on track to deliver adjusted operating profit in line with market expectations of 377 million pounds.

  • Pearson will announce full-year results, including a strategic update and 2022 guidance, on February 25.

  • Pearson pivoted from a traditional publisher of textbooks and news to a digital services provider.

  • Pearson reported an 18% jump in sales from Assessment & Qualifications, its largest business.

  • CEO Andy Bird's flagship app, Pearson+, has notched 2.75 million users and 133,000 paid subscribers.

  • Pearson's shares have had a roller coaster ride since former Walt Disney Co (NYSE: DIS) executive Bird's appointment in October 2020 as he accelerated restructuring of the business, Bloomberg reports.

  • However, the stock gave up much of its gains in recent months as more people opted for jobs in the business's core U.S. market instead of signing up for its courses.

  • Pearson named former AT&T Inc (NYSE: T) and Coca-Cola Co (NYSE: KO) marketing executive Esther Lee as a new director. The hiring follows the appointment of former Twitter Inc (NYSE: TWTR) Executive Chair Omid Kordestani as a non-executive director and Chair designate last month.

  • Price Action: PSO shares traded higher by 6.65% at $9.30 in the premarket session on the last check Wednesday.

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