Reuters parent reports better-than-expected earnings

Thomson Reuters Corp., the parent of the Reuters financial news service, said its second-quarter profit and revenue were nearly flat, although the results topped analysts’ expectations.

Michael Calia of The Wall Street Journal writes, “The news and information service’s core financial and risk unit has faced declining demand from bank clients, as firms have sought to reduce expenses and cut jobs. Thomson Reuters, likewise, has also sought to control costs and scale back its workforce.

“‘The actions we are taking are building a platform for sustainable growth, and we will continue to simplify our organization and position resources behind the most promising growth opportunities,’ Chief Executive James C. Smith said.

“Meanwhile, Thomson Reuters said it wrapped up a $1 billion share-repurchase program during the period, and it plans to buy back as much as another $1 billion in shares by the end of next year.

“Thomson Reuters, which affirmed its outlook for the year, reported a second-quarter profit of $249 million, or 31 cents a share, up from $248 million, or 30 cents a share, a year earlier. Excluding items such as tax-related charges, earnings grew to 51 cents a share from 48 cents a share.”

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