Business data provider Thomson Reuters Corporation (TRI) reported before the opening bell on Tuesday that it turned a net loss in the first quarter, as it took a large restructuring charge. Though underlying operating profit declined from the previous year, it was still able to top Wall Street estimates.
The New York-based company posted a first quarter net loss of $31 million, or 4 cents per share. In the same period a year ago, the company earned $294 million, or 35 cents per share.
The company said it took a $235 million charge in the first quarter, as it simplified and consolidated technologies and assets in order to achieve better efficiency. This charge led to the 4 cents per share loss in the quarter.
For the quarter, operating profit rose to $390 million from $364 million last year. However, on an underlying basis operating profit declined to $462 million from $497 million last year.
Adjusted earnings per share came in at 38 cents for the quarter, topping analysts’ estimates of 32 cents per share.
Revenue for the quarter decline to $3.17 billion from $3.31 billion in the same period last year. Analysts were expecting Thomson Reuters to post revenues of $3.15 billion.
“The first-quarter performance was consistent with our full-year expectations and I am pleased with the positive trajectory of the business as we begin the year,” said James C. Smith, chief executive officer of Thomson Reuters.
Looking ahead to full year results, Thomson Reuters expects revenues to growth in the low single-digits. Analysts are expecting the company’s 2013 revenue to be $12.74 billion.
Thomson Reuters shares were down 80 cents, or -2.36%, during morning trading on Tuesday. The stock is up +14.46% year-to-date.
The Bottom Line
Shares of Thomson Reuters (TRI) have a dividend yield of 3.86% based on last night’s closing price of $33.72 and the company’s annualized dividend payout of $1.30 per share.
Thomson Reuters Corporation (TRI) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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