Group 1 - Pearson plc (NYSE:PSO) is recognized as one of the 11 Best FTSE Dividend Stocks to Buy currently [1] - JPMorgan analyst Daniel Kerven raised the price target for Pearson to 1,330 GBp from 1,310 GBp while maintaining an Overweight rating [2] - Pearson reported a 4% increase in underlying group sales for Q3 2025 and a 2% increase for the first nine months of the year, with Virtual Learning sales up 17% [3] Group 2 - The company has a strong history of shareholder returns, having paid regular dividends for 34 consecutive years, with a current dividend yield of 2.28% as of October 29 [4]

Core Insights - HoloMD has appointed Jim Pearson as Executive Chairman, marking a significant leadership change for the company [1] - This appointment reunites Pearson with Joseph Mark, a long-time collaborator, indicating a strong leadership team [1] - The partnership between Pearson and Mark has a history of building successful healthcare companies, suggesting potential for strong investor returns [1] Company Overview - HoloMD is an AI-powered remote therapeutic monitoring platform focused on psychiatry [1] - The company aims to redefine healthcare delivery through innovative technology [1] Leadership Background - Jim Pearson is described as a veteran med-tech operator, bringing extensive experience to HoloMD [1] - The collaboration between Pearson and Mark has previously resulted in successful outcomes at other companies, such as Suros Surgical Systems and NIC [1]

Core Insights - Pearson has announced a partnership with the Center for Energy Workforce Development (CEWD) to enhance career-connected learning opportunities for students in the energy sector [1][2][10] - The U.S. energy industry is expected to hire millions of new and replacement workers over the next decade, driven by factors such as AI, data center expansion, and increased energy consumption [2][3] - The partnership aims to prepare a future-ready workforce in various fields, including engineering and skilled trades, through initiatives like the Energy Industry Fundamentals 2.0 (EIF 2.0) curriculum [3][6] Company Initiatives - The EIF 2.0 curriculum offers 120 hours of free virtual instruction, including labs and interactive exercises, designed for high school students and beyond [3][4] - Students completing the EIF 2.0 program will earn an industry-recognized credential, enhancing their competitiveness for internships and jobs in the energy sector [4][6] - Connections Academy has expanded its College and Career Readiness offerings to provide tailored opportunities for middle and high school students [4][5] Industry Context - The energy sector is projected to experience employment growth that outpaces other industries, necessitating a prepared workforce [2][3] - CEWD is focused on closing the awareness gap regarding career opportunities in the energy sector through educational programming [6] - The partnership exemplifies a broader strategy to connect education with employment, supporting early career pathways and lifelong learning [6]

Core Insights - The article focuses on investment opportunities in Asia, particularly in Hong Kong, targeting value investors looking for stocks with significant discrepancies between market price and intrinsic value [1] Group 1: Investment Strategy - The research service emphasizes deep value balance sheet bargains, which include net cash stocks, net-nets, low price-to-book (P/B) stocks, and sum-of-the-parts discounts [1] - It also highlights the importance of wide moat stocks, which are characterized by strong earnings power at discounted prices, including high-quality businesses and hidden champions [1] Group 2: Research Offerings - The author provides a range of watch lists with monthly updates to assist investors in identifying potential investment opportunities [1]

Core Insights - The article focuses on the Asia Value & Moat Stocks research service, which targets value investors looking for significant discrepancies between stock prices and intrinsic values, particularly in the Asian market [1] Group 1: Investment Strategy - The service emphasizes deep value balance sheet bargains, such as net cash stocks, net-nets, low price-to-book (P/B) stocks, and sum-of-the-parts discounts [1] - It also highlights wide moat stocks, which are characterized by strong earnings power at discounted prices, including high-quality businesses and hidden champions [1] Group 2: Market Focus - The primary focus of the investment group is on the Hong Kong market, providing a range of watch lists with monthly updates for potential investment opportunities [1]

Financial Performance - Sales growth accelerated to 4% in Q3, indicating broad-based execution across teams and effective navigation of market headwinds [2] - Virtual Learning achieved 17% sales growth during the back-to-school period, driven by improved enrollment performance and digital marketing strategies [2] - Assessment & Qualifications growth also accelerated to 4% in Q3, with Pearson VUE returning to growth due to new contract launches, although some headwinds from federal hiring and spending affected PDRI [3]

Core Viewpoint - Man Group's shares increased by 2.6%, reaching their highest level since early April, following a reported 22% rise in assets under management (AUM) to a record $213.9 billion [1] Group 1: Company Performance - Man Group reported a 22% increase in AUM, reaching a record $213.9 billion [1] - The rise in share price indicates positive market sentiment towards the company's performance [1] Group 2: Market Reaction - The increase in shares by 2.6% reflects investor confidence and market response to the company's strong AUM growth [1]

Financial Performance - Sales growth accelerated to 4% in Q3, with broad-based execution across teams despite market headwinds [3][4] - Higher Education delivered 2% growth in the nine-month period, with solid performance in core U.S. Higher Ed [4][30] - Q3 performance is in line with expectations, with confidence in a stronger Q4 due to known business unit dynamics [5][6] Business Unit Performance - Virtual Learning achieved 17% sales growth in Q3, driven by excellent enrollment performance [3][4] - Assessment and Qualifications growth accelerated to 4% in Q3, with Pearson VUE returning to growth [3][4] - English Language Learning returned to growth in Q3, despite difficult migration conditions in larger markets [5][6] Market Dynamics - International Higher Ed faced challenges, particularly in mature markets like Canada and the UK, leading to a decline [28][30] - The company is shifting strategy towards emerging markets and digital products to address challenges in mature markets [28][29] - Visibility into Q4 performance is decent across business units, with strong expectations for virtual learning and assessments [5][6] Company Strategy and Industry Competition - The company aims to lead in the application of innovative technologies, particularly AI, across products and services [6][7] - Investments are being made to maintain core strengths, including brand and distribution networks, while evolving products to leverage AI [7][11] - Strategic partnerships with companies like Salesforce and Cognizant are being pursued to enhance enterprise learning solutions [12][13] Management Commentary on Operating Environment and Future Outlook - Management is optimistic about Q4 performance and annual results aligning with market expectations [6][30] - The company acknowledges ongoing headwinds in certain segments but is confident in the long-term growth potential driven by digital strategies [28][30] - Future growth is expected to be mid-single digits, with a focus on leveraging new contract wins and improving performance in enterprise learning [25][48] Other Important Information - The Test Prep business is currently small but is being integrated into a broader Pearson Skilling Suite [56][57] - The company is actively monitoring the impact of AI on the education sector and exploring partnerships to enhance learning outcomes [41][42] Q&A Session Summary Question: Clarification on revenue model for new contract wins in Pearson VUE - The revenue model is primarily on a per-candidate basis, with no significant upfront implementation fees [16][20] Question: Expectations for growth from new contract wins in 2026 - Management is not providing guidance for 2026 at this time but expects mid-single digits growth in the medium term [25][26] Question: Challenges in International Higher Ed - The decline in International Higher Ed is attributed to challenges in mature markets, with a strategic shift towards emerging markets and digital products [28][30] Question: Performance expectations for virtual learning and ELL in Q4 - Strong visibility for virtual learning is expected to continue, while ELL is anticipated to have a good Q4, particularly in Latin America [39][40] Question: Clarification on PDRI and PTE performance - PDRI is facing challenges this year, with a slow recovery expected, while PTE has shown stronger performance than initially anticipated [48][50]

Financial Performance - Sales growth accelerated to 4% in Q3, indicating broad-based execution across teams despite market headwinds [2][3] - Higher education segment delivered 2% growth over the nine-month period, with solid performance in core U.S. higher education [3][4] Business Unit Performance - Virtual learning achieved 17% sales growth in Q3, driven by improved enrollment performance and digital marketing [3] - Assessment and qualifications growth accelerated to 4% in Q3, with Pearson VUE returning to growth due to new contract launches [3] - English language learning returned to growth in Q3, despite challenging migration conditions in larger markets [4] Market Dynamics - International higher education faced significant challenges, particularly in mature markets like Canada and the UK, leading to a decline in performance [4][25] - The company is shifting its strategy towards emerging markets and digital products to counteract difficulties in mature markets [25] Company Strategy and Industry Competition - The company is focused on applying innovative technologies, particularly AI, across its products and services to enhance learning outcomes and operational efficiency [5][6] - New partnerships and contracts, such as with Salesforce and Cognizant, are aimed at expanding enterprise customer engagement and leveraging AI capabilities [9][10] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in a strong Q4 performance, driven by known business unit dynamics and enrollment visibility [4][5] - The company anticipates mid-single digits growth for Pearson VUE in the medium term, despite ongoing challenges in the PDRI segment [20][42] Other Important Information - The company is investing in its core strengths, including brand and distribution networks, while renewing products and services with AI at the forefront [6][7] - The test prep business launched in April is still small but is being integrated into a broader offering called the Pearson Skilling Suite [45] Q&A Session Summary Question: Clarification on revenue model for Pearson VUE contracts - The revenue model is primarily on a per-candidate basis, with no significant upfront implementation fees [13][17] Question: Expectations for growth from new contract wins in Pearson VUE - Management did not provide specific guidance for 2026 but indicated that good performance in Q4 would positively impact future growth [19][20] Question: Issues in international higher education segment - The decline is attributed to challenges in mature markets, with a strategic shift towards digital products in emerging markets expected to improve performance [24][25] Question: Future growth expectations for virtual learning - Strong growth is expected to continue into Q4 and beyond, supported by good visibility from back-to-school enrollments [31][32] Question: Visibility on new contracts in English Language Learning - There is good visibility for a strong Q4, particularly in Latin America [33] Question: Opportunities with AI offerings - The company is engaged in discussions with AI firms to explore partnerships and leverage advancements in AI for educational solutions [34]

Core Insights - Pearson reported accelerated sales growth of 4% in Q3 2025, contributing to a 2% growth for the nine-month period ending September 30, 2025, with expectations for stronger growth in Q4 [2][4][24] - The company is executing its strategic priorities effectively, leveraging innovative technologies and expanding its enterprise customer base, positioning itself well for future growth opportunities [1][4] Sales Performance - Underlying Group sales growth accelerated to 4% in Q3, with a total of 2% growth for the nine-month period [2][4] - Assessment & Qualifications sales grew by 4% in Q3, while Virtual Learning sales increased by 17% in the same period, driven by a 13% rise in enrolments for the 2025/26 academic year [5][9] - Higher Education sales decreased by 1% in Q3, primarily due to challenges in International Higher Education markets, although US Higher Education sales grew by 2% [5][13] Strategic Initiatives - Pearson has formed strategic partnerships with Cognizant and Deloitte, and launched a multi-year collaboration with Salesforce as their exclusive provider of certifications [4][5] - The company is expanding its AI learning content, including the launch of AI Literacy Modules and AI-powered Study Prep tools, which are showing positive impacts on learning outcomes [4][14] Future Outlook - The company expects Group sales growth and adjusted operating profit to align with market expectations for 2025, with stronger sales growth anticipated in Q4 [5][18] - Beyond 2025, Pearson is positioned for mid-single digit underlying sales growth CAGR and sustained margin improvement, with free cash flow conversion expected to be between 90% and 100% [5][19]