Given a stronger-than-expected performance in the quarter, the company now anticipates ending the year with flat to slightly increased revenue, compared to its prior guidance of flat to slightly lower income, CEO Tom Glocer told Wall Street analysts. The figures given are after the effect of currency adjustments.
Tax & Accounting revenue reached $244 million in the most recently ended quarter, up from $225 million in last year's corresponding period. Operating income rose to $39 million from $36 million a year earlier. The company expects both revenue and operating income to improve during the current quarter.
The unit was led by the Workflow & Service Solutions group, whose products include Thomson's personal and corporate income tax lines, which had a 15-percent increase in revenue. CFO Robert Daleo said this division comprised two-thirds of the Tax & Accounting business.
Business Compliance & Knowledge Solutions, whose operations include the RIA and PPC lines, had a 1-percent drop in revenue despite a 9-percent increase in revenue from the Checkpoint research platform. Part of that stemmed from the continuing decline in print revenue. However, the company expects earnings and margins to continue to improve during the rest of the year.
Company-wide revenue was virtually unchanged at $3.26 billion, compared to $3.22 billion in last year's corresponding quarter. Net income rose to $277 million for the third quarter, an increase from $167 million a year earlier.Last modified on Sunday, 02 June 2013