- Pearson’s adjusted operating profit for the first half of 2025 was GBP242 million, exceeding the estimate of GBP225 million.
- Total sales were reported at GBP1.72 billion, slightly below the estimate of GBP1.74 billion.
- Revenue from Virtual Learning was GBP242.0 million, just under the estimate of GBP243.6 million.
- Higher Education revenue came in at GBP337.0 million, below the expected GBP350.8 million.
- English Language Learning revenue was GBP171.0 million against a forecast of GBP176.5 million.
- Assessment and Qualifications revenue amounted to GBP802.0 million, close to the estimate of GBP805.4 million.
- The adjusted earnings per share (EPS) was reported at 24.5p.
- The interim dividend per share increased to 7.8p compared to 7.4p in the previous year, against an estimate of 7.9p.
- Pearson declares it is on track to meet its 2025 guidance with expectations for stronger growth in the second half.
- The company’s performance so far has aligned with expectations.
- The acquisition of eDynamic Learning is anticipated not to significantly impact 2025 guidance due to integration costs and deferred revenue accounting.
- Analyst ratings include 5 buy, 5 hold, and 1 sell recommendations.
Pearson Plc on Smartkarma
Analysts on Smartkarma, such as Baptista Research, are providing insightful coverage on Pearson Plc, a company making strategic advancements. Baptista Research‘s report, “Pearson Plc: Initiation of Coverage- Could U.S. Policy Shifts Be the Secret Catalyst Behind Its Growth Surge?” highlights Pearson PLC’s 2024 performance, showcasing a blend of strategic advancements and financial resilience. The company reported a robust financial outcome, aligning with market expectations, including a notable sales growth of 3% and a significant profit increase of 10%, resulting in an EBIT margin of 16.9%.
A look at Pearson Plc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Pearson Plc, a global education company, is positioned for long-term growth based on its Smartkarma Smart Scores. With a strong score of 4 in Growth, Pearson shows promise in expanding its reach and increasing its market presence. This indicates the company is making strategic moves to capture opportunities in emerging markets such as Brazil, China, and South Africa. Additionally, Pearson’s focus on innovation and development in the education sector enhances its potential for sustainable growth.
Despite some areas for improvement, such as a momentum score of 2, Pearson Plc‘s overall outlook remains positive. With an established presence in key markets like North America and the UK, coupled with a diversified revenue stream through ownership of major publications like the Financial Times and a stake in Penguin Random House, Pearson’s resilience in the face of challenges is reflected in its Smart Scores. Investors may find Pearson to be a solid investment choice for the long term as it continues to evolve and adapt to the changing education landscape.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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