|Bid||7.80 x 800|
|Ask||8.73 x 1300|
|Day's Range||8.66 - 8.74|
|52 Week Range||8.46 - 13.19|
|Beta (3Y Monthly)||0.39|
|PE Ratio (TTM)||8.56|
|Forward Dividend & Yield||0.24 (2.84%)|
|1y Target Est||N/A|
Today we will run through one way of estimating the intrinsic value of Pearson plc (LON:PSON) by estimating the...
(Bloomberg Opinion) -- Just as it seemed Pearson Plc was close to exiting the woods, it has taken a sharp turn back into the undergrowth.The U.K. education company surprised investors on Thursday with an update that highlighted a drastic downturn in its U.S. business. The shares fell as much as 19%, the most in 18 months.Pearson was quick to point to market-wide declines in the U.S. as the primary reason why profit would come in at the lower end of its full-year target range. But analysts including Macquarie’s Giasone Salati and Berenberg’s Sarah Simon said that was compounded by the firm losing market share to U.S. rivals Cengage Learning Inc. and McGraw-Hill Education Inc.What’s more, Chief Executive Officer John Fallon is parting company with the head of Pearson’s North American business. The move suggests that Fallon recognizes there have been missteps in the firm’s biggest market.Pearson has been slower than its main competitors to adapt to the new realities of students spending less on new textbooks, preferring to download materials, preferably for free, and buy second-hand books. Cengage Unlimited, which offers students course materials online and other benefits for a subscription fee, is a particular thorn in the London-based firm’s side.The announcement that Kevin Capitani, the president of Pearson’s North American operations, will depart early next year is a tacit acknowledgement that there must have been operational failures. His responsibilities will be divvied up between two other executives. They better get a handle on the market quickly — according to a study commissioned by Pearson itself and released last week, some 75% of Americans think textbooks will be obsolete by 2025, with 59% believing YouTube will become a primary learning tool.Investors have every right to feel disappointed. Analysts have grown steadily more bullish as it appeared that Pearson had turned a corner in North America, where the courseware business accounts for about a quarter of total global sales. For most of 2018, analysts had an average 12-month target price below the level at which the shares were trading. But, while almost half of the analysts covering the stock still recommend selling it, this year the target price had started to exceed the stock as a handful predicted major surges. That confidence now appears misplaced.To be sure, the U.S. market is tough. Higher education courseware sales will fall by between 8% and 12% this year, Pearson said, more than the decline of as much as 5% that it had previously predicted. But there are clearly other underlying operational challenges there that have either been addressed too slowly, or not communicated effectively enough to investors.Those failures have erased much of Fallon’s work to rebuild investor confidence, according to Bloomberg Intelligence analyst John Davies. Given the pace of the U.S. revenue decline, a cost-savings program means he’s pedaling hard just to keep profit steady. So as long as Pearson’s stuck in the woods, it better work on growing some deeper digital roots.To contact the author of this story: Alex Webb at firstname.lastname@example.orgTo contact the editor responsible for this story: Melissa Pozsgay at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Alex Webb is a Bloomberg Opinion columnist covering Europe's technology, media and communications industries. He previously covered Apple and other technology companies for Bloomberg News in San Francisco.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Pearson’s stock plunged on Thursday as the educational publisher warned on profits, blaming weaker U.S. university sales.
Shares of U.K. education group Pearson PLC tumbled 17% in London on Thursday, making it the worst performer on both the FTSE 100 and the Stoxx Europe 600 . Pearson said revenue at its U.S. higher-education courseware segment fell around 10% for the first nine months of the year. It now expects revenue from that business to decline by 8% to 12% in 2019, having previously guided for a fall of up to 5%.
he company now expects revenue from that business to decline by 8% to 12% in 2019, having previously guided for a fall of up to 5%.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Pearson plc and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.
The Wall Street Journal had earlier reported https://on.wsj.com/333azYP that Pearson was notified about the data incident by the Federal Bureau of Investigation in March. The FBI did not immediately respond to Reuters' request for comment.
Large-cap companies pulled European stocks higher on Friday as a surge in Britain's Vodafone and strong earnings for media businesses and Nestle spurred recovery from a sell-off driven by the European Central Bank. Vodafone gained 10.6% to record it strongest performance since late 2002 on plans to separate its towers unit in Europe into a new company worth upwards of 18 billion euros ($20 billion) with a view to a potential stock market listing. The STOXX 600 telecoms index rose 2.3% as shares of Cellnex, currently Europe's biggest towers group, gained 3.3% and Telecom Italia rose 4.1% after Vodafone agreed to jointly roll out 5G in Italy and merge their mobile mast operations.
For many cash-strapped college students, the decision to buy a new or used textbook is a hard one, since older — and cheaper — editions may miss out on key concepts or even chapters.
Prowler said it’s receiving $24 million in new funding and that Tencent led the investment round with participation from Pearson and others including Amadeus Capital Partners, Atlantic Bridge, Cambridge Innovation Capital, Mandatum Life, Passion Capital, RB Capital and Singapore Innovate. The AI company said it will use the money to launch products and move into new industry areas, including education.
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Pearson plc (LON:PSON) as an investment opportunity by taking the expected future cash flows and discounting them to today's value...
It was a rough fourth quarter for many hedge funds, which were naturally unable to overcome the big dip in the broad market, as the S&P 500 fell by about 4.8% during 2018 and average hedge fund losing about 1%. The Russell 2000, composed of smaller companies, performed even worse, trailing the S&P by more […]
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Ideally, your overall portfolio should beat the market average. But every investor is virtually certain to have both over-performing and under-performing stocks. At this point some shareholders may be questioningRead More...
Moody's Investors Service, ("Moody's") has today changed the outlook on Pearson plc to stable from negative. Concurrently, Moody's has affirmed Pearson's Baa2 senior unsecured ratings. "In the backdrop of muted topline performance, Pearson continues to remain focused on improving its profits in 2019 via implementing its cost efficiency program, maintaining low debt leverage and positioning its business for growth by implementing its strategic priorities," says Gunjan Dixit, a Moody's Vice President -- Senior Credit Officer and lead analyst for Pearson.