Reuters parent beats projections, but warns of slowing economy

Thomson Reuters Corp., the parent of the Reuters news service, kept its financial guidance for this year and next after a forecast-beating rise in third-quarter earnings on Tuesday, but warned any worsening of the economic outlook could impact its ability to meet targets, reports Nick Zieminski and Ken Li of Reuters.

Zieminski and Li write, “Thomson Reuters, which owns the Westlaw legal database and the Checkpoint tax and accounting service, made $1.57 billion in quarterly sales, up 3%, slightly below expectations of $1.59 billion. Adjusted earnings per share came in at 57 cents, 7 cents ahead of estimates.

“The company still sees sales growing 5.5% to 6% next year. But it noted 2023 margins were trending towards the lower end of the 39%-40% guidance range amid heightened inflation and investments.

‘The cost of labor is going up, and it’s a very big part of our cost base,’ Hasker said.

“Thomson Reuters’ peers include RELX Group’s LexisNexis, Bloomberg LP, News Corp’s Dow Jones, and Wolters Kluwer.”

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Chris Roush

Chris Roush was the dean of the School of Communications at Quinnipiac University in Hamden, Connecticut. He was previously Walter E. Hussman Sr. Distinguished Professor in business journalism at UNC-Chapel Hill. He is a former business journalist for Bloomberg News, Businessweek, The Atlanta Journal-Constitution, The Tampa Tribune and the Sarasota Herald-Tribune. He is the author of the leading business reporting textbook "Show me the Money: Writing Business and Economics Stories for Mass Communication" and "Thinking Things Over," a biography of former Wall Street Journal editor Vermont Royster.