* Raises forecast for 2010 adjusted EPS to 16 percent growth
* Expects operating profits up 20 percent
* Results boosted by education, digital, emerging mkts
* Shares up as much as 5.6 percent
(Adds further details, reaction, shares)
By Kate Holton
LONDON, Jan 19 (Reuters) - British publishing group Pearson raised its 2010 profit forecast for the second time in three months on Wednesday, driven by its investments in education, digital products and emerging markets.
Pearson said its growth came across the board, with education performing strongly, the Financial Times division set to report "substantial profit growth" and Penguin Books eyeing record results after a strong Christmas.
Shares in the group jumped as much as 5.6 percent to an eight-month high after the upgrade -- its third for the year. They were 4.6 percent higher at 1,052 pence by 0819 GMT.
"This is a really very strong update," Numis analyst Paul Richards said. "This is testament to their sustained investment over a long period of time. And these are quite difficult markets."
Pearson now expects adjusted earnings per share of 76 pence, an increase of around 16 percent on 2009.
That follows an upgrade in October when Pearson raised its full-year outlook for adjusted EPS to 72 pence due to strength in its U.S. College and Financial Times units.
Prior to that it had predicted adjusted EPS of around 70 pence in July.
"For the third successive year, our growth is vigorous even though market conditions have been anaemic," Chief Executive Marjorie Scardino said.
"That confirms the soundness of our strategy and the increasing strength of our market positions. We are on the right road and set out on 2011 with confidence that we will have another good year."
The group also said on Wednesday it now expected to report continuing operating profits for 2010 of around 850 million pounds ($1.36 billion), a headline increase of around 20 percent.
Pearson said it had enjoyed growth across the group.
Its North American education business achieved market share gains following its investment in digital products, setting it up for good sales growth and margin improvement.
The International education business also posted a strong fourth quarter as strong demand in developing markets offset a subdued performance in more mature markets, while the Professional education business remained steady.
The Financial Times finished the year strongly and it expects to report substantial profit growth following an improvement in advertising markets and resilient subscription-based revenues.
Penguin performed strongly in the key trading session, boosted by its strong performance in digital reading, and will report record results despite tough conditions in the physical book retail market.
Pearson will report 2010 results on Feb. 28. ($1=.6251 Pound) (Reporting by Kate Holton and Paul Sandle; Editing by Jon Loades-Carter)