Tags: Thomson Reuters | Earnings | Profit Meets | Sales

Thomson Reuters Profit Meets Estimates on Legal, Tax Sales

Thursday, 30 Oct 2014 02:20 PM

Thomson Reuters Corp., the provider of financial data and news, reported third-quarter profit that matched analysts’ estimates amid improving revenue from the tax-accounting and legal divisions.

Earnings excluding some items were 45 cents a share, the New York-based company said in a statement. That met the average of 18 estimates compiled by Bloomberg. Revenue from continuing operations rose 1.1 percent percent to $3.1 billion, matching the average of predictions.

Chief Executive Officer Jim Smith has been reducing expenses to boost results, including implementing a cost-cutting plan at the company’s financial and risk business. While revenue in that unit, the company’s biggest, fell less than 1 percent during the period, net sales were positive in the Americas, Europe and Asia regions, Thomson Reuters said.

“We are encouraged by the improving net sales momentum and expect organic revenue growth re-acceleration in financial and risk beginning” in 2015’s first half, Drew McReynolds, an analyst with RBC Capital Markets, wrote in research note. RBC recommends buying the shares.

Sales in the legal unit, which added more than a quarter of total revenue in 2013, rose more than 1 percent in the most recent period. The tax and accounting unit, which contributed 10 percent of sales last year, saw an 11 percent gain. The financial and risk unit accounted for more than half of Thomson Reuters’ total sales in 2013.

Forecast Affirmed

Net income fell 15 percent to $231 million, or 28 cents a share, from $271 million, or 33 cents, a year earlier, Thomson Reuters said.

The company today reaffirmed its annual forecast given in February and still expects revenue comparable to 2013, when it reported $12.7 billion on that basis.

The shares fell 0.9 percent to $37.03 at 10:03 a.m. in New York. They had declined about 1 percent this year through Wednesday.

Free cash flow was $875 million down from $976 million a year earlier. That was partly due to higher severance costs, the company said. Thomson Reuters last year said it planned to eliminate 3,000 positions, or about 5 percent of its workforce.

Bloomberg LP, the parent company of Bloomberg News, competes with Thomson Reuters in providing news and information.


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Thomson Reuters Corp., the provider of financial data and news, reported third-quarter profit that matched analysts' estimates amid improving revenue from the tax-accounting and legal divisions.
Thomson Reuters, Earnings, Profit Meets, Sales
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2014-20-30
Thursday, 30 Oct 2014 02:20 PM
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