Thomson Reuters earnings beat estimates; company will cut 3,000 jobs

Thomson Reuters, the parent company of the Reuters financial wire service, reported earnings Tuesday that beat analyst expectations, reports Jennifer Saba of Reuters.

Saba writes, “Excluding special items, the company reported a profit of 48 cents per share, beating Wall Street expectations by 4 cents.

“The company said it planned to take a $350 million charge to accelerate a cost-saving strategy, primarily in the Financial & Risk division. It will eliminate about 3,000 positions.

“Thomson Reuters Chief Executive Officer Jim Smith said in a statement that the company had sold more than 100,000 Eikon desktops to date.

“‘Though we continue to expect challenging conditions in the coming quarters – particularly with the largest global banks — these are significant steps in returning our financial business to a growth footing,’ he said.

“Smith had said he expected net sales in the Financial & Risk division to turn positive in the second half of this year. Net sales, which strip out cancellations, are an important indicator because they lag revenue by about 12 months.”

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