Thomson Reuters third-quarter sales dip; shares down
By Jessica Toonkel
(Reuters) - Thomson Reuters Corp on Friday reported third-quarter sales that missed estimates due in part to the strong dollar, but the news and information company's profit beat Wall Street expectations.
Shares were down 2.2 percent in New York trading.
Thomson Reuters, the parent of Reuters News, competes for financial customers with Bloomberg LP, as well as News Corp's Dow Jones unit.
Continued uncertainty about global growth has put pressure on sell-side financial services firms, the core customers of the company's Financial & Risk business. Since their peak this year in late July, U.S, financial shares are down more than the broader U.S. market.
Morgan Stanley and JPMorgan Chase & Co both reported drops in profits due to the weak trading environment.
"While the company's current business is doing okay, there is no sign that the transactions-related business will get better anytime soon," said Sanford Bernstein analyst Claudio Aspesi. "It does raise questions about the growth of the financial services industry."
The uncertainty in global markets provides an opportunity for Thomson Reuters to serve its financial services clients, Chief Executive Jim Smith said in an interview. "To the extent that we can help banks take out costs and manage their complexity and risk, that's an opportunity for us."
In its Financial & Risk segment, which provides news and analytics to banks and other financial companies, revenue fell 7 percent but was flat when stripping out currency. Margins improved. Continued...