# Thomson Reuters keeps outlook, but wary of slowing economy Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-11-01 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Thomson Reuters Corp maintains financial guidance amid Meta Description: Discover how Thomson Reuters Corp's resilient business strategy has led to a forecast-beating rise in third-quarter earnings, despite economic challenges. URL: https://financedigest.com/thomson-reuters-keeps-outlook-but-wary-of-slowing-economyhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-11-01t105418z2lynxmpeia0190rtroptp4thomson-reuters-results-1736814939668-compressed.jpg) By Nick Zieminski and Kenneth Li NEW YORK (Reuters) -Thomson Reuters Corp kept its financial guidance for this year and next after a forecast-beating rise in third-quarter earnings on Tuesday, but warned any worsening of the economic outlook could impact its ability to meet targets. The news and information company said its three biggest divisions – legal, tax and accounting, and corporates – had held up well to economic challenges so far, helped by a large proportion of long-term contracts in all three. Our results and our [outlook speak to the resilience of our business,”](https://www.financedigest.com/lighting-maker-signify-cuts-2022-outlook-again-on-china-business-lighting.html "Lighting maker Signify cuts 2022 outlook again on China, business lighting") Chief Executive Steve Hasker said in an interview, calling Thomson Reuters products essential and not discretionary spending for clients. But looking into next year, he said the company was monitoring cost-related [inflation – labor in particular – and said technology vendors had demanded “significant” price](https://www.financedigest.com/uk-shop-price-inflation-hits-record-8-in-january-brc-2.html "UK shop price inflation hits record 8% in January: BRC") increases. [Shares fell about 2% in morning New York and Toronto trading](https://www.financedigest.com/social-trading-is-the-new-way-that-gen-z-are-getting-their-share-of-the-pie.html "Social Trading is The New Way That Gen Z Are Getting Their Share of The Pie"). Thomson delivered another good quarter, with solid organic growth and [improved profitability,”](https://www.financedigest.com/efg-international-says-profitability-improved-in-first-nine-months.html "EFG International says profitability improved in first nine months") Edward Jones industrials analyst Matt Arnold said in a note. We like the relative stability of [demand for its core products](https://www.financedigest.com/increasing-demand-for-extruders-and-compounding-machines-to-be-observed-in-speciality-plastics-and-master-batch-production-applications.html "Increasing Demand for Extruders and Compounding Machines to be Observed in Speciality Plastics and Master Batch Production Applications"). However, we believe these [positives are fairly reflected in the shares.”](https://www.financedigest.com/oil-stocks-thrust-london-shares-to-positive-2023-start.html "Oil stocks thrust London shares to positive 2023 start") Thomson Reuters, which owns the Westlaw legal database and the Checkpoint tax and accounting service, made $1.57 billion in [quarterly sales](https://www.financedigest.com/logitech-quarterly-sales-fall-22-as-slowdown-fears-bite.html "Logitech quarterly sales fall 22% as slowdown fears bite"), up 3%, slightly below expectations of $1.59 billion. Adjusted [earnings per share](https://www.financedigest.com/flutters-full-year-earnings-turnaround-forecast-sends-shares-higher.html "Flutter’s full-year earnings turnaround forecast sends shares higher") came in at 57 cents, 7 cents ahead of estimates. The company still [sees sales growing 5.5% to 6% next](https://www.financedigest.com/britains-next-sees-lower-clothing-inflation-shares-dip-on-cautious-outlook.html "Britain’s Next sees lower clothing inflation, shares dip on cautious outlook") year. But it noted 2023 margins were trending towards the lower end of the 39%-40% guidance range [amid heightened inflation and investments](https://www.financedigest.com/analysis-rocket-startups-face-adapt-or-die-moment-amid-investment-drought.html "Analysis-Rocket startups face adapt-or-die moment amid investment drought"). The cost of labor is going up, and it’s a very [big part of our cost](https://www.financedigest.com/exclusive-with-eye-on-big-tech-energy-crisis-eu-telcos-call-for-shared-network-costs.html "Exclusive-With eye on Big Tech, energy crisis, EU telcos call for shared network costs") base,” Hasker said. [Thomson Reuters’](https://www.financedigest.com/thomson-reuters-lifts-sales-outlook-on-back-of-earnings-beat.html "Thomson Reuters lifts sales outlook on back of earnings beat") peers include RELX Group’s LexisNexis, Bloomberg LP, News Corp’s DowJones, and Wolters Kluwer. The company’s three main divisions reported single-digit increases in [quarterly sales](https://www.financedigest.com/britains-next-sticks-to-outlook-after-quarterly-sales-rise.html "Britain’s Next sticks to outlook after quarterly sales rise"), as did the Reuters News division. Reuters News makes about half its revenue from supplying Refinitiv, a data company spun off from Thomson Reuters and now owned by the [London Stock Exchange](https://www.financedigest.com/london-stock-exchange-pours-cold-water-on-merging-listing-segments.html "London Stock Exchange pours cold water on merging listing segments") Group (LSE). Thomson Reuters holds a minority stake in the LSE, [worth about $6.3 billion](https://www.financedigest.com/why-a-quiet-revolution-in-the-cloud-is-worth-billions.html "Why A Quiet Revolution In The Cloud Is Worth Billions") as of Friday, which it will begin selling in tranches next year. Hasker said valuations on potential acquisition targets were down 25% from their peak, calling these [businesses – especially in the company’s big](https://www.financedigest.com/smishing-is-a-new-virus-plaguing-big-business-conversational-commerce-to-the-rescue.html "‘Smishing’ is a new ‘virus’ plaguing big business – Conversational Commerce to the rescue!") three market segments – more reasonably priced. [Thomson Reuters](https://www.financedigest.com/thomson-reuters-report-reveals-risk-compliance-staff-expect-to-see-significant-benefits-from-artificial-intelligence-ai-and-distributed-ledger-technologies.html "Thomson Reuters Report Reveals Risk & Compliance Staff Expect to See Significant Benefits from Artificial Intelligence (AI) and Distributed Ledger Technologies") will be “quite a bit more aggressive in the next few quarters in looking at acquisitions,” he said. The company will have an estimated $12 billion of capital capacity between now and 2025 for deals, and will be able to continue the 10% [annual dividend](https://www.financedigest.com/deutsche-post-raises-annual-dividend-warns-of-challenging-2023.html "Deutsche Post raises annual dividend; warns of challenging 2023") increase, chief financial officer Mike Eastwood said. [(Reporting by Ken Li and Nick Zieminski in New YorkEditing by Mark](https://www.financedigest.com/geoengineering-marks-scientific-gains-in-u-n-report-on-dire-climate-future.html "Geoengineering marks scientific gains in U.N. report on dire climate future") Potter) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---