# Thomson Reuters lifts sales outlook on back of earnings beat
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-08-05
Category: BUSINESS
Category URL: https://financedigest.com/category/business
Meta Title: Thomson Reuters Corp beats Q2 forecasts; raises annual
Meta Description: Thomson Reuters Corp surpasses Q2 expectations with higher sales, raising annual revenue forecast. Positive outlook driven by global economy recovery.
URL: https://financedigest.com/thomson-reuters-lifts-sales-outlook-on-back-of-earnings-beathtml

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By Kenneth Li and Nick Zieminski

NEW YORK (Reuters) -Thomson Reuters Corp reported better-than-expected results in the second quarter with higher sales across its main divisions, and raised its annual revenue forecast.

Underscoring its upbeat outlook, fueled by a recovering global economy, the global news and information company said on Thursday it would buy back up to $1.2 billion of its shares.

The [company said it is monitoring whether the spread of the Delta variant of COVID-19 is affecting](https://www.financedigest.com/factbox-companies-potentially-affected-by-italys-election.html "Factbox: Companies potentially affected by Italy’s election") its businesses.

We do not think that there is a significant [financial impact](https://www.financedigest.com/how-mifid-ii-will-impact-financial-advisor-communications.html "HOW MIFID II WILL IMPACT FINANCIAL ADVISOR COMMUNICATIONS") for our customers, and therefore for us through the rest of this year,” Chief Executive Steve Hasker said, adding that the course of the pandemic was unpredictable.

The Thomson Reuters print and [events businesses](https://www.financedigest.com/how-to-bring-business-and-charities-together-through-events.html "How To Bring Business And Charities Together Through Events") are among the areas most vulnerable in case of a worsening of the COVID-19 situation, Chief Financial Officer Michael Eastwood said.

[Thomson Reuters](https://www.financedigest.com/thomson-reuters-keeps-outlook-but-wary-of-slowing-economy.html "Thomson Reuters keeps outlook, but wary of slowing economy"), which is the parent company of Reuters News, said its total revenues rose 9% to $1.53 billion, compared to expectations of $1.5 billion.

Adjusted earnings per share of 48 cents also topped analyst expectations, based on data from Refinitiv, marking the fifth consecutive quarter that Thomson Reuters’ adjusted earnings topped [Wall Street](https://www.financedigest.com/asian-stocks-edge-up-before-u-s-jobs-data-defying-wall-street-selloff.html "Asian stocks edge up before U.S. jobs data, defying Wall Street selloff") estimates.

[Operating profit](https://www.financedigest.com/ikea-stores-owner-ingkas-annual-operating-profit-rises-9.html "IKEA stores owner Ingka’s annual operating profit rises 9%") was down 14% to $316 million, reflecting one-time gains in the year-ago quarter.

Thomson Reuters’ three main divisions, Legal Professionals, Tax & Accounting Professionals, and Corporates, showed [higher sales](https://www.financedigest.com/renault-revenues-rise-30-in-q1-on-higher-sales-and-prices.html "Renault revenues rise 30% in Q1 on higher sales and prices"), led by a 15% revenue gain in the tax group, excluding currency fluctuations. On that basis, the Reuters News segment saw sales up 6% to $168 [million in the quarter](https://www.financedigest.com/warner-bros-discovery-adds-2-million-subscribers-in-first-quarter.html "Warner Bros Discovery adds 2 million subscribers in first quarter").

All the divisions are expected to show higher [sales in the third quarter, and total revenue for 2021 is now seen rising 4% to 4.5%, Thomson Reuters said, marking the second increase to sales guidance this year](https://www.financedigest.com/spains-november-retail-sales-fall-0-6-on-year.html "Spain’s November retail sales fall 0.6% on year").

Thomson Reuters executives said in an interview after the results that it has spent $90 [million of an estimated $500 million to $600 million investment](https://www.financedigest.com/nissan-renault-to-invest-600-million-to-make-6-new-models-in-india.html "Nissan, Renault to invest 0 million to make 6 new models in India") as part of its Change program to shift from a portfolio company into an operating company.

It [expects to spend the rest by the end](https://www.financedigest.com/sales-of-stent-graft-balloon-catheter-in-cardiac-catheterization-laboratories-are-expected-to-surpass-us-1000-mn-by-the-end-of-2022.html "Sales of Stent Graft Balloon Catheter In Cardiac Catheterization Laboratories are Expected to Surpass US$ 1,000 Mn by the End of 2022") of 2022.

The executives said $700 [million remained of a $2 billion mergers and acquisitions](https://www.financedigest.com/10-million-to-be-whipped-into-ice-cream-brand-four-winters-following-acquisition.html " Million To Be Whipped Into Ice Cream Brand Four Winters Following Acquisition ") budget and there was a “robust” pipeline of targets in the automation, small-to-medium sized cloud-based and software-as-services businesses, and companies that help improve customer experiences.

The London [Stock Exchange Group in January closed a $27-billion deal data](https://www.financedigest.com/stocks-sag-as-hawkish-fed-cools-china-rally-awaits-us-jobs-data.html "Stocks sag as hawkish Fed cools China rally; awaits US jobs data") and analytics company Refinitiv that was part of Thomson Reuters until 2018. Thomson Reuters holds a minority stake in LSE which was [worth $7.5 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 Aug. 4.

(Writing by Nick Zieminski; Editing by Carmel Crimmins and Alexander Smith)


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