Pearson 2017 Results to Be at Upper End of Guidance; Tax Rate to Remain Unchanged
January 17 2018 - 3:00AM
Dow Jones News
By Maryam Cockar
Pearson PLC (PSON.LN) said Wednesday that full-year results will
be at the upper end of its guidance and that its effective tax
remains unchanged between 20% and 22% following tax reform in the
U.S.
The education publisher said it also expects to have a small,
one-off deferred tax charge in 2017.
The tax law passed by U.S. Congress late last year and signed by
President Donald Trump on Dec. 22 includes a reduction of the
corporate-tax rate to 21% from 35% and limits on the deductibility
of corporate interest payments.
Pearson said it expects to report adjusted operating profit of
between 600 million pounds ($826.1 million) and GBP605 million for
2017, which is at the upper end of its October 2017 guidance range
of between GBP576 million and GBP606 million. At average effective
exchange rates, Pearson expects to report adjusted operating profit
between GBP570 million and GBP575 million.
Adjusted earnings per share is anticipated to be between 53.50
pence and 54.50 pence, which is also above the October 2017
guidance range of between 49 pence and 52 pence.
In the fist nine months of 2017, underlying revenue fell 2% in
line with expectations as North America revenue fell 4%. Pearson
said sales for U.S. higher education courseware fell 3% on an
underlying basis, which was in line with the lower end of its
guidance range.
Write to Maryam Cockar at maryam.cockar@dowjones.com
(END) Dow Jones Newswires
January 17, 2018 02:45 ET (07:45 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
Pearson (NYSE:PSO)
Historical Stock Chart
From Apr 2024 to May 2024
Pearson (NYSE:PSO)
Historical Stock Chart
From May 2023 to May 2024