Thomson Reuters Corp. (TSX:TRI, NYSE:TRI) has posted improved first-quarter results, with its CEO indicating that the news and information provider expects to make acquisitions in the legal and accounting areas with proceeds from the pending sale of a majority stake in its Financial & Risk unit.
Thomson Reuters said adjusted earnings per share in the first quarter of 2018 totaled US$0.28, up from US$0.25 a share in the first quarter of 2017. Revenue rose 4%, to US$1.38bn from US$1.33bn.
Analysts on average were expected earnings of US$0.27 and revenue of US$1.33bn.
"We are encouraged by the best first-quarter performance in several years, with each business having performed at or above our expectations," said Jim Smith, president and CEO of Thomson Reuters.
Thomson Reuters in late January announced a definitive agreement to sell a 55% stake in its Financial & Risk unit to private equity firm Blackstone Group LP (NYSE:BX), with Thomson Reuters receiving about US$17bn in proceeds at closing.
Smith said in an interview today with Reuters that his company expects to use US$1bn to $3bn of the proceeds from the Blackstone deal to make acquisitions in legal and accounting, but has no plans to go into new businesses.
"We think there is plenty of runway to continue to grow right where we are today our legal and regulatory businesses," Smith said in the interview.
Thomson Reuters also announced that it may buy back up to US$500mln of its shares prior to the closing of the proposed Financial & Risk transaction.
Shares of Thomson Reuters were down around 2% in early trading, at US$38.50 a share.