Thomson Reuters 3Q net income grows, revenue falls
NEW YORK (AP) — Thomson Reuters said Friday that third-quarter net income rose 25 percent, helped by a tax benefit, as revenue declined amid a challenging economic environment.
The news and financial information company earned $462 million, or 56 cents per share, in the July-September period. That's up from earnings of $369 million, or 44 cents per share, in the same period a year ago.
Excluding one-time items, the New York-based company's adjusted earnings were $445 million or 54 cents per share in the latest quarter, the same as last year.
Revenue fell 7 percent to $3.21 billion from $3.45 billion.
Analysts were expecting adjusted earnings of 48 cents per share on revenue of $3.21 billion, according to a poll by FactSet.
The latest quarter's results included a tax benefit of $140 million. A year ago, the company had tax expenses of $145 million.
"Third-quarter results met our expectations even as the market environment remained challenging," said CEO James C. Smith in a statement. The company's subscription-based businesses did well, he added.
Thomson Reuters sells market data, news and information to people in the financial, legal, accounting and scientific research industries. Nearly 90 percent of its $12.7 billion in annual revenue last year came from subscriptions to those services. In 2011, 57 percent of Thomson Reuters' annual revenue was derived from its customers in the financial industry.
Thomson Reuters reaffirmed its 2012 outlook and said it still expects revenue to grow in the low-single digits.
The company's stock slid 34 cents to $28.18 in afternoon trading.