Pearson sees FY adjusted EPS above 49p-52p guidance range
Adjusted earnings per share is above the October 2017 guidance range of 49p-52p reflecting an improved tax rate of around 11%, due to the further favourable outcome of certain historical tax issues, and after a net interest charge of approximately GBP 80m. At guidance exchange rates, adjusted operating profit of c.GBP 600m-605m is at the upper end of the October 2017 guidance range of GBP 576m-GBP 606m. Total underlying revenues declined 2%, in line with the performance in the nine-months, due to a decline of 4% in North America partly offset by stabilisation in Core and Growth. Sales in US higher education courseware were down 3% on an underlying basis, in line with the lower end of our revised guidance range, due to the continuation of trends seen in the first nine-months combined with cautious buying behavior from channel partners in the fourth quarter.