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Analysts warn of additional Pearson profit warning after share price slump

In the UK, finance analysts have warned Pearson investors are ‘increasingly concerned about the risk of an additional profit warning’ after the publisher’s share price fell 5.6% to 773.00p (A$16.56) on 12 November, reports the Bookseller. The Pearson share price has fallen further since, closing on 16 November at 765.00pp (A$16.39), an additional drop of 2.11%. The latest share price slide follows a slump on 21 October after the company issued its full-year profit warning, when shares dropped by almost 16% in what was the company’s biggest share price fall since the 1987 stock market crash. Analyst Claudio Aspesi told the Bookseller that investors are ‘increasingly concerned about the risk of an additional profit warning from the company’, while Digital Look cited analyst Alex De Groote’s comments that he ‘expected Pearson to issue another profit warning in the next few weeks and then to cut the dividend’. On 12 November Pearson CEO John Fallon told a conference in Barcelona the company was unlikely to see the same seven percent growth it’s seen over the past decade, adding that ‘long-term trends pointed to “stabilisation” in 2017 followed by “some growth”’.

 

Category: International news