UPDATE 3-Thomson Reuters misses EPS forecast, predicts revenue growth
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By Jennifer Saba
NEW YORK Feb 11 (Reuters) - Thomson Reuters Corp on Wednesday reported quarterly earnings that missed analysts forecasts, sending its shares lower even as the news and information company forecast a return to organic revenue growth.
Both adjusted fourth quarter profit and revenue missed analysts' forecasts as a strengthening U.S. dollar took its toll on Thomson Reuters, many of whose financial clients are overseas. Thomson Reuters shares, which have gained 24 percent over the last 12 months, were down 3.4 percent in early afternoon trade.
While full-year 2014 revenue factoring out currency changes or acquisitions was flat, Thomson Reuters said it expects such organic revenue to grow in 2015 after sales of its financial products outpaced cancellations in 2014 for the first time in six years.
The company has struggled in recent years to regain its footing after Thomson Corp acquired Reuters Group Plc in 2008, in a $17 billion merger that was completed just as the financial industry crisis started.
"We are entering 2015 in the best place we have been in a long time," Chief Executive Jim Smith said in an interview. "The underlying sales trajectory are good indicators of our capacity for future revenue growth."
The Financial & Risk division, which caters to banks and other financial institutions, represents more than half of the company's total revenue. For that division, net sales, which strip out cancellations, have lagged since the merger as banks slashed spending and cut headcount. Continued...