Friday, June 12, 2020

Education News: Wiley Reports & Pearson shares jump 11% as activist Cevian discloses stake

Wiley reported 4Q and full year results:

FOURTH QUARTER 2020 SUMMARY
  • GAAP Results: Revenue of $475 million (-3%) and EPS of -$2.83, primarily due to impact of unusual items totalling -$3.49 per share, including non-cash goodwill and trade name impairments
  • Adjusted Results (at constant currency): Revenue -2%, EBITDA -23%, and EPS -44%, mainly reflecting the COVID-19 impact on print books, test prep, and corporate training
  • Strong momentum in Open Access research publishing and digital courseware
  • Addition of four new university partners in Education Services (Drake University, University of Iowa, Methodist University, and Point University)
FISCAL YEAR 2020 SUMMARY
  • GAAP results: Revenue of $1,831 million, and EPS of -$1.32 primarily due to fourth quarter non-cash goodwill and trade name impairments
  • Adjusted results (at constant currency): Revenue +3%, EBITDA -8%, and EPS -21%
  • Free Cash Flow of $173 million, up $24 million (+16%) from prior year
  • Digital products and tech-enabled services rose to nearly 80% of total revenue

Pearson Shares Jump on Cevian Investment:

From Reuters:
Shares in Pearson (PSON.L) jumped 11% on Friday after activist investor Cevian Capital disclosed a 5.4% stake in the British education publisher, lifting expectations for a performance boosting shake-up at the company. Cevian Capital, which holds large stakes in companies such as Ericsson (ERICb.ST), ABB (ABBN.S) and CRH (CRH.L), said it had been following Pearson closely for several years.

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