Thomson Reuters Q1 Earnings Miss Expectations

reported weaker-than-expected earnings for the first quarter on Wednesday. The New York-based company reported a quarterly profit of $305 million, or $0.38 per share, versus a year-ago profit of $282 million, or $0.34 per share. Excluding one-time items, the company earned $0.44 per share. Its revenue declined 3 percent to $3.04 billion. However, analysts were expecting earnings of $0.45 per share on revenue of $3.04 billion. The company's revenue in its financial-and-risk division came in flat in the quarter, while recurring revenue dropped 1 percent. Organic revenue at its legal division gained 3 percent to $810 million, while organic revenue at its tax & accounting unit rose 7 percent to $373 million. Revenue in Europe, Middle East and Africa slipped 2 percent, revenue in Asia dropped 1 percent. Revenue in the Americas gained 2 percent in the quarter. Adjusted EBITDA dropped 2 percent to $803 million in the latest quarter, while underlying operating profit fell 2 percent to $515 million. "2015 is off to a solid start as we continue building our sustainable platform for growth," said James C. Smith , president and chief executive officer of Thomson Reuters. "We are strengthening our core businesses, improving all aspects of our go-to-market capabilities and putting more resources behind high-growth opportunities." Thomson Reuters shares closed at $40.81 yesterday.