UPDATE 5-Thomson Reuters misses on revenue, reaffirms outlook

Thu Jul 28, 2016 12:34pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

(Adds analyst comment, details from analyst conference call, updates shares)

By Jessica Toonkel

July 28 (Reuters) - Thomson Reuters Corp's revenue missed Wall Street expectations on Thursday, pushing down the stock more than 2 percent, but the news and information company reaffirmed its full-year sales outlook.

Total second-quarter revenue was unchanged from a year earlier at $2.77 billion before currency, but fell 1 percent when currency changes were factored in. Analysts, on average, estimated $2.83 billion, according to Thomson Reuters I/B/E/S.

Chief Executive Jim Smith acknowledged that uncertainty around Britain's exit from the European Union poses challenges for many big clients, but he said it also provides an opportunity for Thomson Reuters.

"There is no question that we are anticipating there will be continued pressure on headcount in the European banking sector, including the UK, and that will put pressure on the terminals business," Smith told Reuters. "Regardless of how this shakes out, we think we are well-positioned with people on the ground in every relevant market."

Net earnings were $350 million, or 45 cents per share, versus $281 million, or 33 cents per share, a year ago.

Adjusted for special items, earnings of 50 cents per share were 1 cent above estimates, according to Thomson Reuters I/B/E/S.

Thomson Reuters, the parent of Reuters News, competes for financial customers with Bloomberg LP and News Corp's Dow Jones.   Continued...