Thomson Reuters operating profit tops Wall Street estimates

NEW YORK (Reuters) – Thomson Reuters Corp (N:) (TO:), parent of the Reuters News agency, reported higher-than-expected quarterly operating profit on Thursday and affirmed its 2019 and 2020 estimates.

The news and information provider posted single-digit sales increases in the third quarter in each of its three largest divisions, Legal Professionals, Corporates and Tax & Accounting Professionals.

Operating profit rose to $262 million, or 27 cents a share, from $173 million or 12 cents a share a year ago, reflecting the revaluation of warrants the company holds in Refinitiv, which the London Stock Exchange (LSE) (L:) has agreed to buy.

Analysts, on average, expected profit of 19 cents a share, according to Refinitiv.

Thomson Reuters affirmed its 2019 and 2020 sales and earnings outlook, which it had raised in August.

The LSE agreed on Aug. 1 to buy the financial-data business, now called Refinitiv, from Blackstone (NYSE:) for $27 billion in an all-share deal.

Thomson Reuters will hold a 15% stake in the LSE on completion of the Refinitiv deal, which is expected in the second half of 2020, the companies said. A Thomson Reuters representative will also sit on the LSE board.

Revenue rose 10% to $1.41 billion in the quarter, slightly below estimates.

Thomson Reuters reported a net loss of $44 million, or 9 cents per share, versus a profit of $302 million, or 39 cents per share, a year ago.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.