Pearson Shares Punished Following Performance Update

Pearson PLC (ADR) PSO was hammered on Monday after it released its interim management statement.

The U.K.-based publisher said underlying sales for the nine-month period fell 7 percent, as assessment revenues in the U.K. and U.S. and North American Higher Education courseware declined. The weakness was attributed to a further inventory correction by retailers in July and August. Reported sales fell 3 percent on the USD strength.

However, as a consolation, the company noted improving trends in September, which has extended into October.

Despite weakness in sales, Pearson maintained its 2016 and 2018 estimates. For 2016, the company continues to expect adjusted operating profit and earnings per share of 580 million pounds to 620 million pounds and 50-55 pence, respectively.

The ADR of Pearson was down 8.22 percent at $9.27 Pearson PLC (ADR). On the LSE, Pearson shares ended down 8.41 percent at 762.50.