Pearson (NYSE:PSO) Posts Quarterly Earnings Results, Misses Estimates By $0.17 EPS

Key Points

• Pearson reported quarterly EPS of $0.19, missing analysts’ $0.36 consensus estimate by $0.17. Revenue was $1.18 billion, substantially below expectations of $2.35 billion.
• PSO shares fell $0.49 to $16.91 following the results, though the stock remains near its 52-week high of $17.75 and above its 50-day and 200-day moving averages.
• Analyst sentiment is mixed, with two Buy ratings and four Hold ratings; MarketBeat’s overall consensus rating is Hold. Institutional investors own approximately 2.14% of the company.

Pearson (NYSE:PSO - Get Free Report) issued its quarterly earnings results on Thursday. The company reported $0.19 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.36 by ($0.17), FiscalAI reports. The company had revenue of $1.18 billion during the quarter, compared to analysts' expectations of $2.35 billion.

Pearson Price Performance

Shares of PSO traded down $0.49 during trading hours on Friday, hitting $16.91. 1,155,851 shares of the company were exchanged, compared to its average volume of 1,034,420. The firm's fifty day moving average is $15.92 and its 200 day moving average is $14.31. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.94 and a current ratio of 2.00. Pearson has a fifty-two week low of $12.02 and a fifty-two week high of $17.75.

Analyst Ratings Changes

A number of brokerages have recently weighed in on PSO. Wall Street Zen lowered Pearson from a "buy" rating to a "hold" rating in a research note on Monday, May 18th. Weiss Ratings upgraded Pearson from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Thursday, June 4th. Finally, JPMorgan Chase & Co. restated a "neutral" rating on shares of Pearson in a report on Tuesday, July 14th. Two research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Hold".

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. CIBC Private Wealth Group LLC raised its holdings in Pearson by 952.1% during the 3rd quarter. CIBC Private Wealth Group LLC now owns 1,757 shares of the company's stock worth $25,000 after purchasing an additional 1,590 shares during the last quarter. Kestra Advisory Services LLC acquired a new position in Pearson during the 4th quarter worth approximately $35,000. Caitong International Asset Management Co. Ltd bought a new position in shares of Pearson in the 4th quarter worth $42,000. Smartleaf Asset Management LLC boosted its stake in Pearson by 31.8% during the 4th quarter. Smartleaf Asset Management LLC now owns 7,758 shares of the company's stock valued at $110,000 after purchasing an additional 1,874 shares during the last quarter. Finally, Vise Technologies Inc. purchased a new position in shares of Pearson during the fourth quarter valued at approximately $143,000. 2.14% of the stock is currently owned by institutional investors and hedge funds.

About Pearson

Pearson plc is a global education company headquartered in London, England, with significant operations in North America, Europe, Asia, and Latin America. Tracing its roots back to 1844, Pearson evolved from its early beginnings into one of the world's leading providers of educational content, digital learning tools, and assessment services. The company's American subsidiary trades on the New York Stock Exchange under the symbol PSO.

Pearson's core business encompasses a broad portfolio of products and services for learners, educators, and institutions.

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