Thomson Reuters raises sales outlook on core business strength in slowing economy

© Reuters. FILE PHOTO: The Thomson Reuters logo is seen on the company building in Times Square, New York, U.S., January 30, 2018. REUTERS/Andrew Kelly/File Photo

NEW YORK (Reuters) - Thomson Reuters (NYSE:TRI) Corp reported higher second-quarter operating profit on Thursday and raised its full-year revenue forecast, citing strength in its legal, tax and accounting and corporates businesses.

The news and information company said that it now expects 2022 revenue to rise by 6%, from 5.5%, adding that revenue from its "Big 3" segments is expected to rise by 7% this year.

The parent company of Reuters News reported second quarter adjusted earnings of 60 cents a share. Analysts, on average, had expected 53 cents a share, according to Refinitiv estimates.

Total revenues rose 5% in the quarter to $1.61 billion, matching Wall Street estimates, while operating profit rose 24% to $391 million, Thomson Reuters said.

"Leading indicators remain healthy, and we have a resilient, highly recurring business serving growing industries," Chief Executive Steve Hasker said in a statement.

Thomson Reuters executives have said that because 80% of its revenues are recurring, this has helped insulate it from unpredictable economic pressures.

"Looking ahead, I am confident that we are well-positioned to navigate broader market concerns such as inflation and slowing economic growth," Hasker added

Thomson Reuters shares have outperformed the broader market this year, with its U.S.-listed shares down about 5% versus a 13.3% drop for the S&P 500. The company's peers include RELX Group’s LexisNexis, Bloomberg LP, News Corp (NASDAQ:NWSA)'s DowJones and Wolters Kluwer NV.

Revenue grew across five of its business segments. The big 3 segment rose 6%, while Reuters News revenue rose 9% as a result of a boost from events and annual increases from payments from a news agreement with Refinitiv, Thomson Reuters said.

Last month, the company named Paul Bascobert as president of Reuters News, turning to a tech and media veteran to drive growth at the 171-year-old news organization.

Reuters News earns about half of its sales by supplying news to Refinitiv, a data company spun off from Thomson Reuters and now owned by the London Stock Exchange Group (LON:LSEG).