Thomson Reuters Posts Loss; Stock Down - Update

(RTTNews) - Thomson Reuters Corp. (TRI) (TRI.TO) Wednesday reported a slip to loss in the fourth quarter, hurt mainly by charges as well as a three percent drop in revenues stemming from weakness in Europe and emerging markets. As well, adjusted earnings for the quarter fell short of Wall Street estimates while revenues were in line with expectations.

Thomson Reuters expects revenues for fiscal year 2014 to be flat compared with the prior year. Shares of the company dropped 5.5 percent on the New York Stock Exchange.

CEO Jim Smith said that external headwinds were stronger than anticipated at year-end, particularly in Europe and the emerging markets.

The New York-based company posted a quarterly net loss to shareholders of $351 million or $0.43 per share, compared with a net profit of $352 million or $0.42 per share last year.

Results for the recent quarter included, among other items, about $400 million tax charge related to the consolidation of its technology and content assets.

Excluding items, adjusted earnings for the quarter were $170 million or $0.21 per share, compared with $450 million or $0.54 per share a year ago.

On average, 12 analysts polled by Thomson Reuters expected earnings of $0.52 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter declined 3 percent to $3.28 billion from $3.36 billion a year ago. Analysts expected revenues of $3.28 billion for the quarter.

Revenue in the Financial & Risk division fell 2 percent to $1.6 billion due to lower transaction volumes and subscription sales. Trading revenue slumped 5 percent owing to legacy desktop cancellations in equities and fixed income.

Revenue at the legal division was up 1 percent, while tax and accounting revenue gained 9 percent.

Moving forward, Thomson Reuters has forecast revenues in fiscal year 2014 on level with the previous year's $12.7 billion. Analysts currently estimate revenues of $12.8 billion for 2014.

Thomson Reuters announced a $0.02 per share annualized increase in the dividend to $1.32 per share, and declared a quarterly dividend of $0.33 per share.

The company's stock is trading at $34.57, down $2.03 or 5.55%, on a volume of 1.5 million shares on the NYSE. On the Toronto Stock Exchange, the stock is trading at $37.93, down $2.29 or 5.69%.