Thomson Reuters ups 2022 revenue forecast after Q1 beat

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NEW YORK (Reuters) -Thomson Reuters Corp raised its 2022 revenue forecast on Tuesday after beating first-quarter expectations on sturdy development throughout its core authorized, tax and accounting, and company companies.

The dad or mum firm of Reuters News stated that whereas the primary quarter gave it extra confidence in its monetary outlook, the continued pandemic and geopolitical dangers and any worsening of the economic system might damage its capability to achieve its targets.

The firm, which additionally owns the Westlaw authorized database and the Checkpoint tax and accounting service, reported adjusted earnings of 66 cents per share, 5 cents forward of Wall Street expectations.

Operating revenue was up 7% to $414 million, whereas complete revenues rose 5.5% within the quarter to $1.67 billion, additionally forward of expectations, in response to estimates from Refinitiv.

Revenues are actually forecast to rise 5.5% this yr, up from an earlier estimate of a few 5% improve.

“I consider we proceed to profit from a major prevailing tailwind that drives the necessity for the trusted, correct and actionable content material and know-how that we offer,” Chief Executive Steve Hasker stated in a memo to workers.

The three important divisions – Legal Professionals, Tax & Accounting Professionals, and Corporates – reported increased quarterly gross sales, led by an 11% improve within the tax enterprise.

Revenue at Reuters News rose 9% to $176 million.

While data companies shares proceed to indicate development, they’ve lagged the broader market in 2022 as traders have switched to firms with extra scope for restoration in earnings because the pandemic abates.

Thomson Reuters’ U.S.-listed shares are down about 20% this yr versus a ten% drop for the S&P 500. The firm’s friends embrace RELX Group’s LexisNexis, Bloomberg LP, News Corp’s DowJones, and Wolters Kluwer NV.

Reuters News makes about half its revenue from supplying information to Refinitiv, a knowledge firm spun off from Thomson Reuters and now owned by the London Stock Exchange Group. Thomson Reuters holds a minority stake within the LSE following the deal, value about $7.2 billion as of Monday, the corporate stated.

(Reporting by Ken Li and Nick Zieminski in New YorkEditing by Mark Potter)



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