Thomson Reuters Beats Q3 Earnings Forecast; Q4 Expected to Get Hit with Charges; to Cut 4% of Workforce Worldwide

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Thomson Reuters (TRI) reported better-than-expected earnings for Q3 ended Sept. 30 but expects Q4 results to be impacted by charges related that will be taken in its financial and risk and the enterprise, technology, and operations group.

Adjusted EPS was $0.54, up 20% from last year’s $0.45, exceeding the Capital IQ consensus of $0.48. Revenues were at $2.74 billion compared to $2.75 billion a year ago but were a slight miss compared to the mean estimate of $2.75 billion provided by Capital IQ.

For Q4, the company expects to cut about 2,000 jobs worldwide, or about 4% of its workforce, and record a charge of approximately $200 million to $250 million “to accelerate the pace of the company’s transformation program by further simplifying and streamlining the business.” The restructuring across 39 countries and 150 locations would mainly affect the Financial & Risk business and the Enterprise, Technology & Operations Group, the company said.

As a result, revenue growth is estimated to be low single-digit, adjusted EBITDA margin to range between 25% and 26%, and underlying operating profit margin to be 16% to 17%.

The company will be paying a quarterly dividend of $0.34 per common share on Dec. 15 to shareholders of record as of Nov. 17.

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