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Investing.com -- Pearson (NYSE:PSO) (LON:PSON) shares popped more than 4% Friday after the company reported a 2% increase in both underlying sales and adjusted operating profit for the first half (H1) of the year, beating analyst expectations. The U.K. education company said it expects growth to accelerate in the second half of the year.
Underlying revenue rose 2% year-on-year in the six months to June, slightly ahead of consensus forecasts, with growth accelerating from 1% in the first quarter to 3% in the second.
Adjusted EBIT reached £242 million, beating analyst expectations by 4% at a 1.31 exchange rate.
“We are making rapid progress with bringing AI-powered products to market and are scaling and enhancing our enterprise business with a range of new partnerships and deals,” said Chief Executive Omar Abbosh.
The company had guided for low single-digit underlying sales growth in the first half.
"The H1 results look better than expected, which could see the shares react positively today," Morgan Stanley (NYSE:MS) analyst Luke Holbrook said in a note.