UK's Pearson raises 2010 profit forecast again

British publishing group Pearson raised its 2010 profit forecast for the second time in three months on Wednesday, driven by its investments in education, digital products and emerging markets. Pearson said its growth came across the board, with education performing strongly, the Financial Times division set to report "substantial profit growth" and Penguin Books eyeing record results after a strong Christmas.

Shares in the group jumped as much as 5.6 per cent to an eight-month high after the upgrade - its third for the year. They were 4.6 per cent higher at 1,052 pence by 0819 GMT. "This is a really very strong update," Numis analyst Paul Richards said. "This is testament to their sustained investment over a long period of time. And these are quite difficult markets." Pearson now expects adjusted earnings per share of 76 pence, an increase of around 16 per cent on 2009. That follows an upgrade in October when Pearson raised its full-year outlook for adjusted EPS to 72 pence due to strength in its US College and Financial Times units. Prior to that it had predicted adjusted EPS of around 70 pence in July. The group also said on Wednesday it now expected to report continuing operating profits for 2010 of around £850 million ($1.36 billion), a headline increase of around 20 per cent. Pearson said it had enjoyed growth across the group.