Thomson Reuters shares hit by disappointing earnings

In New York, TRI lost 2.53 per cent of its value at $38.59 on volume of just under two million shares. The shares had early fallen by as much as 3.6 per cent in mid-day trading.

In Toronto, the stock was 1.93 per cent lower at C$48.80 on volume of 2.4 million shares.

The company’s $0.43 earnings per share for the fourth quarter of 2014 missed the consensus estimate of $0.47 by four cents. The year-ago EPS figure was $0.49.

Revenue for the quarter was 1.7 per cent lower on a year-over-year basis at $3.21 compared with the consensus estimate of $3.27 billion.

Chief executive James Smith (photo), in a conference call with analysts, said: “What a difference another year makes. Over the past 36 months we’ve made significant progress in putting the company back on solid footing. 2014 will be known as the year when Thomson Reuters turned to offence.”​

Smith added: “I believe 2015 will mark the first year of organic growth since I took over as CEO (in January 2012) and we’re making this prediction in spite of the negative impact of commercial adjustments we need to make this year.”

He said Thomson Reuters expected it would take another year to fully complete a turnaround of its financial and risk division, which serves banks and other financial  institutions and typically accounts for about half of the group’s total revenue. ■