Reuters parent beats estimates, raises outlook
Thomson Reuters Corp., the parent of the Reuters news service, raised its sales and earnings outlook for 2019 and 2020 on Thursday after reporting 4 percent organic revenue growth in the second quarter, which it said was its best since 2008.
Georgina Prodham and Matt Scuffham of Reuters reported, “Growth in the second quarter was driven by recurring revenues at all three of its biggest units – Legal, Corporates and Tax & Accounting – since the news and information provider sold a majority in its Financial and Risk business, now known as Refinitiv, to Blackstone last year.
“Adjusted earnings of 29 cents per share beat the average analyst estimate of 18 cents, according to IBES data from Refinitiv.
“Shares in the company, which hit an all-time high last week, rose as much as 2.2 percent in morning trading. The stock has risen 88 percent since last May, helped by a $10-billion share buyback and new product launches.
“‘Thomson Reuters is making nice progress in repositioning the business after the sale of Refinitiv,’ said Edward Jones analyst Matt Arnold. ‘It’s showed up in the quarter through nice organic growth and profitability improvement.'”
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