Pearson's share price is falling for the third day in a row and showing no signs of letting up

 
James Nickerson
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Pearson sold its stake in the FT in July (Source: Getty)

Pearson's share price is trading down for the third consecutive day, and not showing any signs of reversing.

In late morning trading the FTSE 100-listed publisher's share price was down 4.4 per cent at 908.6p, having closed 4.9 per cent down yesterday.

On Wednesday Pearson's share price fell 15.95 per cent, after it issued a profit warning, saying conditions in its markets were "yet to improve".

The company blamed lower enrolments at some US colleges and lower school text book purchases in parts of South Africa for its downbeat forecast.

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Shares in Pearson, which sold the Financial Times and its 50 per cent stake in The Economist Group earlier this year, have lost 24 per cent of its value since Tuesday.

“The bounce in Pearson’s share price following the sale of the Financial Times has now been completely obliterated. The company has warned on profits from its traditional publishing arm due to lost textbook orders in the United States. Having dived nearly 16 per cent, Pearson shares now sit at an 18 month low,” said CMC Markets analyst Jasper Lawler.

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Meanwhile, after yesterday's fall, Barclays analysts wrote in a note that "the most concerning thing for us about Pearson's weak nine-month update is how little visibility they seemed to have at first half results on 24 July.

"It is hard to see this share price fall as an opportunity".

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