missed its second quarter earnings target but reaffirmed full year guidance.
The Stamford, Conn., legal and financial electronic publisher made $301 million, or 46 cents a share, in the quarter ended June 30, up from the year-ago $191 million, or 29 cents a share. Revenue rose to $2.06 billion from $1.87 billion a year earlier.
But excluding certain tax credits and normalizing the tax rate in both periods, underlying earnings were 24 cents a share in the latest quarter, up from 23 cents a year ago but a penny shy of the Thomson First Call analyst consensus estimate. Thomson said earnings growth in the second quarter of 2005 was dampened by increased taxes and higher amortization.
"Our businesses showed continued broad-based strength in the quarter as each of our market groups achieved accelerated organic revenue growth as well as operating profit increases. Overall, organic revenue growth was four percent in the second quarter or double the year-over-year growth in the first quarter. Importantly, revenue growth is driving solid underlying profit growth," said CEO Richard Harrington. "Looking ahead, we expect our operations to continue to perform well and we remain on track to achieve our long-term financial targets. We are confident we will have another year of solid financial results."
The company guided toward full year revenue growth of 7%-9%, in line with its long range plan, and said it expects some margin improvement as well.
Early Wednesday, Thomson was at $34.46.