Thomson Reuters Profit Tops Estimates on Rising Tax Salesby
Reiterates forecast of low single-digit revenue growth in 2016
Company is selling intellectual property and sciences division
Thomson Reuters Corp. reported first-quarter profit that beat analysts’ estimates as its tax and accounting unit posted rising sales driven by corporate business.
Earnings excluding some items rose to 48 cents a share, the New York-based company said Tuesday in a statement. That compared with the 44-cent average of analysts’ estimates compiled by Bloomberg. Revenue from continuing operations fell 1 percent to $2.79 billion, missing Wall Street projections of $2.81 billion. The company reiterated a forecast of low single-digit revenue growth in 2016.
Shares of Thomson Reuters rose 2.7 percent to $41.98 t 9:55 a.m., the highest intraday price since Oct. 23. The stock had climbed 8 percent this year through Monday.
Thomson Reuters provides news, data and analytics to the financial industry, as well as law and accounting firms, corporations and governments. The company has been consolidating how it delivers its services to save money after large banks cut costs and smaller vendors caused the company to lose market share after the financial crisis, according to Bloomberg Intelligence.
Reuters is in the process of selling its intellectual property and sciences division, which generates less than 10 percent of revenue and isn’t considered by the company to be part of core operations, according to Bloomberg Intelligence.
- Sales at the financial division, the company’s largest, fell 1 percent to $1.51 billion, adjusted for currency fluctuations. The unit’s adjusted earnings before interest, taxes, depreciation and amortization increased 9 percent.
- Revenue rose 2 percent in the legal unit, also adjusted for currency movements, and increased 8 percent in the tax and accounting division.
Bloomberg LP, the parent company of Bloomberg News, competes with Thomson Reuters in providing news and information.