Thomson Reuters Q3 Profit Tops View, Revenues Miss; Sees EPS At Top End Of Range

(RTTNews) - Thomson Reuters (TRI.TO, TRI) reported that its earnings attributable to common shareholders for the third quarter ended September 30, 2017 rose to $330 million from $273 million in the same quarter last year. Earnings per share increased 28% to $0.46 from the previous year's $0.36 primarily due to higher operating profit, despite the loss of earnings from IP & Science following its sale in the fourth quarter of 2016. Lower interest and tax expense were offset by higher expenses from non-cash foreign currency fluctuations on intercompany loans.

The company reaffirmed its full year guidance and expects to achieve the high end of its full-year 2017 adjusted earnings per share guidance, which was increased last quarter to between $2.40 to $2.45. The company expects low single-digit revenue growth. Analysts expect annual earnings of $2.45 per share.

Adjusted earnings per share for the third-quarter were $0.68, an increase of 26% from $0.54 last year primarily due to higher adjusted EBITDA, and lower interest and tax expense. Analysts polled by Thomson Reuters expected the company to report earnings of $0.58 per share for the quarter. Analysts' estimates typically exclude special items.

Operating profit increased 21% to $467 million from the previous year, due to higher revenues and a gain on the sale of an investment.

Revenues increased about 2% to $2.79 billion from last year's $2.74 billion due to higher recurring revenues and a positive impact from foreign currency. At constant currency, revenues increased 1%. Wall Street expected revenues of $2.82 billion.