When it releases its full-year results on Friday, analysts are expecting the US higher education arm of FTSE 100 firm Pearson plc (LON:PSON) to once again drag on its figures.
The textbook publishing giant, which sold off its US school courseware business for US$250mln earlier this week, has struggled for a while now with declining textbook sales and the transition to digital learning.
In a preview, analysts at Hargreaves Lansdown reckon Pearson’s adjusted operating profits will come in at between £540mln-£545mln.
That’s in line with the firm’s own predictions from January, although much of this is likely to have come from cost-cutting, whereas Hargreaves would “like to see evidence Pearson is improving its sales figures”.
“We expect the North American higher education sector to continue struggling, given increasing technological and competitive pressures. Hopefully, this is being offset by demand for online and virtual learning materials – which should still be steadily growing,” the analysts added.
Afarak to report after recent profit warning
On what looks like being a quiet day in London, chrome producer Afarak Group PLC (LON:AFRK) is also due up with its full-year results, fresh off the back of a profit warning.
Earlier this week, Afarak said it to take a €6.5mln write-down of its trouble-plagued metal alloys plant at Mogale in South Africa due to ongoing tough conditions in the steel additive market.
While the write-down doesn’t affect cash flow, it will “materially impact” full-year results.
Significant events expected on Friday, February 22:
Finals: Pearson PLC (LON:PSON), Afarak Group PLC (LON:AFRK)
Economic data: CBI distributive trades survey