Pearson raises earning outlook on US results

PUBLISHING group Pearson lifted its full-year earnings outlook yesterday, boosted by strong performance at its US College unit and the Financial Times in the first nine months of its trading year.

The company, which also owns Penguin books and is the leading North American educational technology provider, said it now expected its adjusted earnings per share to be up 10 per cent, compared with earlier guidance for a 7 per cent rise to 70p.

It came as Pearson said it was raising its guidance despite the uncertain macroeconomic outlook after unveiling a 7 per cent rise in sales in the first nine months on constant exchange rates.

Sales at Penguin were up 5 per cent, the education business was up 7 per cent and the Financial Times group was up 11 per cent, with the latter boosted by strong demand for its print, digital subscriptions and growth in advertising. Overall adjusted operating profits were up 15 per cent.

"The end of the year is a key selling season in education and consumer publishing, and both businesses face tough comparables in the fourth quarter of 2010," the group said. "However, we are trading ahead of previous guidance and we now expect full-year adjusted earnings per share to increase by approximately 10 per cent on the 2009 base of 65.4p."

Analysts at UBS said the strong trading had been boosted by a good performance from the US College unit.