You are here: Home » International » News » Companies
Business Standard

Thomson Reuters second-quarter profit tops estimates

Thomson reuters is seeing its business grow at a time when companies have been cutting headcount

Reuters 

Thomson Reuters second-quarter profit tops estimates

Corp on Tuesday reported higher-than-expected second-quarter earnings, helped by demand for market data, and increased its full-year forecast for margins and adjusted earnings per share.

The Toronto-based information services provider is seeing its business grow at a time when many financial services have been cutting headcount.

Despite this, the need for market data continues to grow, said Jim Smith, chief executive of Thomson Reuters, in an interview Tuesday.

"The overall demand for market data last year increased and has never been higher," Smith said. "It's just that it's feeding machines as opposed to educating people behind terminals."

Sales in the company's Financial & Risk division, which accounted for more than half of company revenue, outpaced cancellations, a key indicator of future growth, driven by sales in Europe, Middle East, Africa and Asia. Financial & Risk revenue, excluding currency, was up 2 percent to $1.5 billion.

The news and information company reported second-quarter net earnings of $206 million, or 27 cents per share, compared with $350 million or 45 cents per share a year ago.

Adjusted for special items, earnings were 60 cents per share, 8 cents ahead of estimates, according to I/B/E/S.

Margins were stronger than expected, said Drew McReynolds, analyst at RBC Capital Markets, in a note to clients.

Total second-quarter revenue was $2.78 billion, up 2 percent from a year earlier, but was flat when currency was factored in.

That matched analyst expectations, according to I/B/E/S.

Thomson Reuters, which is the parent of Reuters News, competes for financial customers with Bloomberg LP, as well as News Corp's Dow Jones unit.

The company raised its 2017 forecast for earnings to between $2.40 and $2.45 per share, up from $2.35. It raised a forecast for adjusted earnings margins to a range of 29.3 percent to 30.3 percent.

also affirmed its outlook of low single-digit revenue growth.

The company saw increased revenue across all of its divisions except for Reuters News, which saw $74 million in revenue, down 5 percent year over year.

Smith said the revenue decline was due to a one-time benefit that hit last year.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Tue, August 01 2017. 20:42 IST
RECOMMENDED FOR YOU