Publisher Pearson said it expects to post earnings per share for 2006 at the top end of current market expectations due to strong fourth-quarter trading.
Traders said they expect Pearson's shares to rise 2 per cent, which would put them back near 856-1/2 pence, the four-and-a-half-year peak they hit on Friday.
The world's biggest publisher of educational materials said its education arm saw good revenue momentum and better margin improvement than expected, while the Financial Timesboosted circulation and advertising and Penguin had a good year-end publishing and selling season.
The update regarding Penguin contrasts with the profit warning publisher Bloomsbury issued last month due to lower-than-expected pre-Christmas sales in the retail trade.
Pearson said analysts' estimates for 2006 adjusted earnings per share, including its government solutions business, range from 36.1 pence to 40 pence.