Thomson Reuters Profit Tops Estimates

(RTTNews) - Financial information provider Thomson Reuters Corp (TRI, TRI.TO), on Wednesday reported an increase in second-quarter profit, driven largely by stronger operating margins, even as negative impact of foreign currency eroded revenues by 4 percent. The company's quarterly earnings topped Wall Street estimates while revenues fell shy of expectations.

Looking ahead, the company reaffirmed its outlook for the full year 2015.

"Our results are in line with our full-year expectations, and on a pre-currency basis, each of our four operating units reported growth for the first time in more than three years," said CEO James Smith in a statement.

Shares of the company gained more than 4 percent in morning trade on the New York Stock Exchange.

Thomson Reuters, based in New York, posted second-quarter net earnings of $262 million or $0.33 per share, compared with $249 million or $0.31 per share in the prior year.

Excluding items, adjusted earnings for the quarter were $0.52 per share, compared with $0.51 per share a year ago. On average, 17 analysts polled by Thomson Reuters expected the company to report earnings of $0.50 per share for the quarter. Analysts' estimates typically exclude special items.

Operating margin for the quarter improved to 19% from 18.4% last year.

The company's revenues for the quarter declined 4 percent to $3.04 billion from $3.16 billion last year. Twelve analysts had a consensus revenue estimate of $3.07 billion for the quarter.

Thomson Reuters noted that the negative impact of foreign currency reduced revenues by 6 percent.

Among segments, revenue at the company's financial and risk division fell 6 percent from a year ago to $1.55 billion.

For the full year 2015, the company continues to expect positive organic revenue growth. The Street is currently looking for revenues of $12.37 billion in 2015.

Thomson Reuters shares is trading at $39.35, up $1.69 or 4.49%, on the NYSE.

In Toronto, the stock is trading at C$50.45, up C$1.78 or 3.66%.