Thomson Reuters Tops Earnings Target on Financial Unit GainsGerry Smith
Thomson Reuters Corp. reported second-quarter profit that beat analysts’ estimates as the provider of news and data cited improving revenue at its financial and risk division.
Earnings rose to 52 cents a share excluding some items, the New York-based company said Wednesday in a statement. That compared with the 50-cent average of estimates compiled by Bloomberg. Revenue fell 3.8 percent to $3.04 billion, dragged down by the impact of foreign exchange. Analysts had projected $3.07 billion.
Revenue at the financial division, the largest, rose 1 percent on a so-called organic basis, which excludes currencies, among other things. That was the best performance and first quarter of growth since the fourth quarter of 2011. The unit’s profit increased 1 percent, before interest, taxes, depreciation and amortization.
Thomson Reuters has been reducing expenses and looking to its legal and tax businesses to bolster results. Excluding currencies, sales rose 2 percent in the legal unit and 6 percent at the tax and accounting division.
The stock closed up 1 percent to $37.66 Tuesday in New York. It has fallen 6.6 percent this year, while the Standard & Poor’s 500 Index rose 1.7 percent.
Bloomberg LP, the parent company of Bloomberg News, competes with Thomson Reuters in providing news and information.
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