Thomson Reuters first-quarter profit beats estimates
By Jessica Toonkel
(Reuters) - Thomson Reuters Corp (TRI.N: Quote) (TRI.TO: Quote) on Tuesday reported higher-than-expected quarterly earnings on improved results in its main business of providing news and analytics to financial companies.
Sales in the Financial & Risk division, which accounted for about half of the company's total revenue, outpaced cancellations for the eighth straight quarter. Thomson Reuters, whose shares rose more than 2 percent in New York and Toronto, said the unit's net sales were positive overall.
"It's encouraging to see the continued progress in our results despite the volatility and uncertainty in the external markets," Chief Executive Officer Jim Smith said in an interview.
Sliding commodity and oil prices, worries about the Chinese economy and uncertainty about U.S. interest rates have put pressure on Financial & Risk customers. U.S. financial shares .SPSY have lagged the broader U.S. market .SPX this year.
"We are selling solutions that help customers reduce their costs and do a better job managing the increasingly complex regulatory environment," Smith said. "Nothing in this environment makes those needs less."
Thomson Reuters, parent of Reuters News, competes against Bloomberg LP and News Corp's (NWSA.O: Quote) Dow Jones unit for financial customers.
Michael Formuziewich, a portfolio manager with Toronto-based Leon Frazer & Associates, expressed confidence that Thomson Reuters would fare well even with continued market volatility, given its plans to continue to manage costs.
"For the most part, the growth in earnings for Thomson Reuters in the next year are things they have control over," said Formuziewich, whose firm owns shares of the company. Continued...