Reuters Earnings Top Estimates as Asian Growth Counters Currencyby
Thomson Reuters Corp. reported fourth-quarter profit that beat analysts’ estimates as growth in Asia and the Americas offset a slump in Europe at the provider of news and data.
Earnings excluding some items rose to 65 cents a share, the New York-based company said Thursday in a statement. That compared with the 58-cent average of analysts’ estimates compiled by Bloomberg. Revenue fell 2 percent to $3.15 billion, missing Wall Street projections of $3.18 billion.
The company forecast low single-digit revenue growth in 2016.
Thomson Reuters has been consolidating how the company delivers its services to save money after smaller vendors caused the company to lose market share following the financial crisis, according to Bloomberg Intelligence. In October, the company said currency fluctuations would probably have a higher-than-usual impact on 2015 results.
- Currency market fluctuations reduced revenue by 4 percentage points.
- Sales at the financial division, the largest, dropped 4 percent to $1.53 billion. The unit’s profit increased 26 percent, due to savings related to efficiency initiatives.
- Sales fell 1 percent in the legal unit and increased 3 percent in the tax and accounting division.
Bloomberg LP, the parent company of Bloomberg News, competes with Thomson Reuters in providing news and information.