UPDATE 3-Thomson Reuters beats EPS forecast, sees 2016 revenue growth

(Adds comments from CEO Jim Smith)
By Jessica Toonkel
Feb 11 (Reuters) - Thomson Reuters Corp TRI.N TRI.TO
reported higher-than-expected quarterly profit on Thursday,
benefiting from lower costs and tax savings, and said it expects
its revenue to grow by low single digits in 2016.
Despite volatile markets, the news and financial information
provider said it expects 2 to 3 percent revenue growth this
year, assuming constant currency rates.
"There is a lot to be worried about there," Chief Executive
Jim Smith said about global markets in an interview on Thursday.
"But when I spoke to our largest customers this year and when I
spoke to major regulators this year, no one believes that we are
in a place where the fundamentals are anywhere near where they
were in 2008 and 2009."
Adjusted for special items, Thomson Reuters' fourth-quarter
net earnings were 65 cents per share, up from 43 cents per share
a year ago.
Analysts, on average, were looking for 58 cents per share,
according to Thomson Reuters I/B/E/S.
The 7-cent beat came from cost controls and from
lower-than-expected tax rates, said Sanford Bernstein analyst
Claudio Aspesi.
Volatile currencies, falling oil prices and worries about
slowing growth in China have put pressure on sell-side financial
services firms, the core customers of Thomson Reuters Financial
& Risk business. Goldman Sachs Group Inc (N:GS) GS.N and other banks
are looking to slash expenses further this year.
Since the beginning of this year, U.S. financial shares
.SPSY are down 15.2 percent while the broader U.S. market
.SPX is down 9.4 percent.
Thomson Reuters, the parent of Reuters News, competes for
financial customers with Bloomberg LP, as well as News Corp's
NWSA.O Dow Jones unit.
Smith noted that the fourth quarter is key for Thomson
Reuters' Financial & Risk division, which makes up about half of
the company's revenue, because that is when clients decide
whether to renew for the year.
"It's generally when the big banks tend to adjust their seat
count for the coming year," Smith said.
The division, which provides news and analytics to financial
services companies, showed sales outpacing cancellations - a key
indicator of future growth, marking the seventh consecutive
quarter of positive net sales at Financial & Risk. Revenue was
$1.53 billion for the quarter.
Quarterly revenue was slightly below estimates, down 2
percent to $3.15 billion, but would have been up 2 percent when
factoring out currency. Analysts had forecast $3.17 billion.
The company said it plans to buy back about $1.5 billion of
its shares, having largely completed its prior $1 billion
buyback program.
The company's 2016 forecast excludes revenue from its
Intellectual Property & Sciences business, which it expects to
sell in the second half of this year.
Thomson Reuters announced in November it was exploring
strategic options for the business, which provides intellectual
property and scientific information and associated tools and
services to governments, universities and companies. It had
revenue of $1 billion in 2015
CEO Smith said he would favor using proceeds from the sale
to buy back shares and said he has no plans for major
acquisitions in 2016.