Thomson Reuters Reports Higher Profit, 31% Growth in Tax & Accounting Market

Thomson Reuters Corporation beat analyst expections for the first quarter, with strong sales from its tax and accounting division boosting the higher profit results, according to financial reports released today. The company also affirmed its outlook for the year.

The global news and information provider, which also produces software and online technologies for the tax and accounting profession and the legal community, reported that first-quarter revenue from ongoing businesses grew four percent before currency changes to $3.19 billion. This is above the  average analyst forecast of $3.13 billion, according to Thomson Reuters I/B/E/S.

Adjusted earnings per share rose to 44 cents from 37 cents in the same period last year. That beat analysts' average forecast of 41 cents per share.

While many areas of the company showed gains of a few percent over last year, the Tax & Accounting arm posted revenue growth of 31 percent to $310 million.It's legal unit, which includes WestlawNext, posted a 3 percent revenue gain to $777 million.

"Our Financial & Risk business continues to make progress in a very difficult environment," Chief Executive James Smith said in a statement. "We are executing against a more focused strategy."

One of Thomson Reuters' key financial products, Eikon, showed 30 percent customer growth over the fourth quarter.

The company reports revenue in the following units: Financial & Risk, Legal, Tax & Accounting, Intellectual Property & Science, and Corporate & Other.