Thomson Reuters beats EPS forecast, sees 2016 revenue growth

Thu Feb 11, 2016 8:35am EST
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By Jessica Toonkel

(Reuters) - Thomson Reuters Corp (TRI.N: Quote) (TRI.TO: Quote) reported higher-than-expected quarterly profit on Thursday, benefiting from lower costs and tax savings, and said it expects its revenue to grow by low single digits in 2016.

Despite volatile markets, the news and financial information provider said it expects 2 to 3 percent revenue growth this year, assuming constant currency rates.

"There is a lot to be worried about there," Chief Executive Jim Smith said about global markets in an interview on Thursday.

"But when I spoke to our largest customers this year and when I spoke to major regulators this year, no one believes that we are in a place where the fundamentals are anywhere near where they were in 2008 and 2009."

Adjusted for special items, Thomson Reuters' fourth-quarter net earnings were 65 cents per share, up from 43 cents per share a year ago.

Analysts, on average, were looking for 58 cents per share, according to Thomson Reuters I/B/E/S.

The 7-cent beat came from cost controls and from lower-than-expected tax rates, said Sanford Bernstein analyst Claudio Aspesi.

Volatile currencies, falling oil prices and worries about slowing growth in China have put pressure on sell-side financial services firms, the core customers of Thomson Reuters Financial & Risk business. Goldman Sachs Group Inc (GS.N: Quote) and other banks are looking to slash expenses further this year..   Continued...

The Thomson Reuters logo is seen on the company building in Times Square, New York October 29, 2013.   REUTERS/Carlo Allegri