Pearson’s (PSON) shares enjoyed a 7 per cent leap on the day management reported first-quarter numbers – a sizeable move for a large company, particularly considering the shares are already up 34 per cent in the year to date.
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The reason for the excitement is management’s assurance of a recovery in the key North American market. Underlying revenues were up 3 per cent here in the first quarter due to a lower rate of textbook returns. But competition remains fierce, particularly as Pearson’s main rival has a subscription service that offers textbooks at a third of the price of the US average.
