The Publishers Weekly Stock Index rose 6.5% in January, as the share prices at five companies rose, while prices fell at another five. The increase was due to the 9.8% increase posted by Amazon, which drove its stock price to $823.48 at the end of the month. Excluding Amazon, the PWSI was down 3.6%. The share prices of two publishers were hammered by investors in January. Educational Development Corp.’s stock price plunged 33.5% as the company disclosed late in the month that, despite another record revenue quarter for the period ended October 31, it is still dealing with issues connected to its rapid growth, and orders are continuing to be backlogged. Pearson’s stock price dropped 29% in January. In the middle of the month the company said that revenue in its North American higher education group was lower than forecast and that it expects future profits to be lower than original estimates. It also said it is lowering its dividend and is planning to sell its 47% stake in Penguin Random House.
|Company||Dec. 30||Jan. 31||% Change|
|Houghton Mifflin Harcourt||10.85||11.30||4.4%|
|Barnes & Noble||11.15||10.20||-8.5%|
|Educational Dev. Corp.||9.95||7.45||-33.5%|
|Publishers Weekly Stock Index||998.90||1,063.54||6.5%|
|Dow Jones Aver.||19,762.60||19,864.09||0.5%|
Source: Publishers Weekly