Business data provider Thomson Reuters Corp. (TRI: Quote, TRI.TO) said Tuesday it posted a better-than-expected increase in earnings for the second quarter, mainly on elimination of integration expenses and a lower tax rate. Revenues meanwhile slid four percent, on lower growth at Financial & Risk segment as Trading and Investors businesses waned.
Moving forward to the full year 2012, Thomson Reuters said it still expects revenues to grow low single-digits.
New York-based Thomson Reuters reported second quarter net income of $922 million or $1.11 per share, compared to $563 million or $0.67 per share last year. Excluding items, earnings for the quarter were $449 million or $0.54 per share, compared to $429 million or $0.51 per share last year.
On average, 19 analysts polled by Thomson Reuters expected earnings of $0.50 per share for the quarter. Analysts' estimates typically exclude special items.
For the quarter, Thomson Reuters benefited from other operating gains of $798 million, up from $286 million in the prior year.
Revenues for the quarter were lower by 4 percent at $3.31 billion, compared to $3.45 billion last year. On an ongoing basis, revenues before currency impacts rose 3 percent from last year to $3.2 billion, while analysts expected $3.21 billion.
Its Financial & Risk segment, which accounts for a bulk of the business, suffered a 3 percent decline in revenues compared to last year. The company also saw lower growth from its other businesses.
Meanwhile, Legal and Intellectual Property & Science segments each edged up 2 percent, and Tax & Accounting jumped 24 percent.
Earlier this month, Thomson Reuters agreed to acquire all the shares of electronic foreign exchange platform FX Alliance Inc. (FX) for $22 per share in cash. Thomson Reuters said the waiting period under the Hart-Scott-Rodino Act has expired in connection with acquisition, thereby satisfying one of the conditions for the consummation of the tender offer that is scheduled to expire on August 14. The company expects the acquisition to close in the third quarter.
TRI is trading at $28.11, down 2.70%, on a volume of over 1.0 million shares on the NYSE.
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by RTT Staff Writer
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