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Thomson Reuters Q3 earnings beat estimates

Thomson Reuters Q3 earnings beat estimates
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First Published: Tue, Nov 01 2011. 05 24 PM IST

Reuters building in New York. Bloomberg
Reuters building in New York. Bloomberg
Updated: Tue, Nov 01 2011. 05 24 PM IST
Thomson Reuters Corp reported a higher-than-expected 10% rise in quarterly profit as strength in its business serving lawyers and accountants offset weakness in its Markets division.
The news and data provider, which has announced several reorganizations in recent months to boost revenue in the Markets division, reaffirmed its outlook for 2011.
Reuters building in New York. Bloomberg
“We expect the benefit of these changes will improve sales performance in 2012 and benefit 2013 revenue growth,” chief executive Tom Glocer said in a statement.
The company said in September it would merge its Professional division serving mainly lawyers and accountants with its Markets division, which targets banks and other financial institutions. That division has struggled in part due to the slow uptake of the company’s new flagship Eikon desktop product.
Thomson Reuters said it has migrated more than 32,000 existing customers to Eikon since the September 2010 launch, up from 28,000 at the end of the 30 June .
Third-quarter total revenue was $3.26 billion, up 5% before currency changes. Analysts had expected revenue of $3.23 billion, according to Thomson Reuters I/B/E/S.
Revenue in the Professional division, which accounts for 42% of overall revenue, increased 10% after growing 8% in the second quarter.
Revenue in the Markets division, which accounts for about 58% of total revenue, rose just 1%, matching the rise in the second quarter.
Adjusted earnings per share rose to 56 cents from 45 cents in the same quarter last year. Analysts had expected earnings of 53 cents per share.
Thomson Reuters said it still expects revenue to grow by a mid-single digit percentage rate in 2011.
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First Published: Tue, Nov 01 2011. 05 24 PM IST