* Adjusted EPS 48c vs 49c expected
* Forecasts slower rev growth this year, $100 mln cost cuts
* No layoffs planned at this time - new CEO Hasker
* Too early to predict when world markets may recover
* Dividend, acquisition plans on track
(Adds bullet points, share reaction, details from analyst call
and analyst comment)
By Nick Zieminski and Kenneth Li
NEW YORK, May 5 (Reuters) - Thomson Reuters cut its
full-year sales outlook due to disruption to the global economy
from the coronavirus crisis on Tuesday as it reported higher
quarterly sales and earnings which fell slightly short of Wall
Street estimates.
The company, controlled by Canada's Thomson family, said it
was targeting a $100 million cost reduction program to address
the changed business environment and noted it has no debt due
until 2023. It said it has enough liquidity for the next 12
months and does not expect to change its dividend payout.
The news and information provider, which owns Reuters News,
reported a 2% rise in first quarter revenue to $1.52 billion,
helped by gains in its legal and corporates businesses, and said
operating profit rose 6% to $290 million.
Adjusted earnings of 48 cents a share were 1 cent below Wall
Street expectations, according to Refinitiv.
Thomson Reuters U.S.-listed shares were flat in
early trading, while its Toronto-listed shares were down 0.9%.
The stock had dropped by about a third between late February and
late March, but has since recovered most of those losses.
Thomson Reuters forecast total revenue growth of 1%-2% this
year, below its February estimate of 4.5%-5.5%, saying its
business of selling information and software electronically and
by subscription was not immune to the global economic downturn.
"These were impressively stable results," said Matt Arnold,
an analyst with Edward Jones, who cited Thomson Reuters'
recurring revenues as a source of strength.
"Its ability to weather the downturn is very high. Thomson
provides mission critical information that businesses need.
They're still looking at growth for this year," Arnold said,
adding that it was "very hard to find" companies which were
growing in the current tough business climate.
"We don't plan any layoffs at this point in time," Steve
Hasker, who succeeded Jim Smith as chief executive of Thomson
Reuters in February, said in an interview with Reuters. "We are
focused on investing in our business."
Chief Financial Officer Michael Eastwood, said Thomson
Reuters would continue to seek opportunities as part of a $2
billion acquisitions budget. But the company does not expect to
buy back shares in the near term, he told analysts on a
conference call.
Executives said they would evaluate potential targets that
may come up at the end of this year or early in 2021, adding
that it was too early to predict when world markets may recover.
The company has spent $1.3 billion through the beginning of
the year and Hasker, who was formerly president of Nielsen
, said any purchases would be considered "bolt-ons" to
existing businesses and not in new sectors.
REFINITIV SALE
The coronavirus pandemic has brought major economies to a
halt, pushed millions into unemployment as businesses shutter,
and emptied trading floors around the world as companies
scrambled to slow its spread among their workers.
Thomson Reuters executives said that they aimed to cut
discretionary expenses, while nearly all the company's own
24,000 employees have been working remotely during the outbreak.
Reuters News revenues were flat at $155 million, while
organic revenues fell 4% due to COVID-19 related cancellations
of events in the Reuters Events business, the company said.
Thomson Reuters also said it expects the sale of data
company Refinitiv to close in the second half of 2020.
London Stock Exchange said last month it was
committed to completing its $27 billion takeover of Refinitiv,
in which Thomson Reuters has a 45% stake, with no plans to
revise savings targets as recession looms.
(Writing by Nick Zieminski in New York; Editing by Alexander
Smith)