Thomson Reuters Freezes Hiring, Curbs Travel

Management at Thomson Reuters Corp. (TRI) said that the recent turmoil in financial markets has “raised the potential” that revenue growth will slow next year.

“We continue to believe that growth [in the markets division] will be approximately flat in Q4 given the lag factor between job cuts and cancellations,” wrote UBS analyst Jeffrey Fan, in reference to troubled times at large financial institutions that buy data and equipment from Thomson.

Mr. Fan sees increased downside risks to the consensus earnings estimates for 2009.

A report in the Wall Street Journal yesterday said that Thomson Reuters has implemented a hiring freeze in its markets division and tightened its travel policy because of the crisis engulfing Wall Street.

Mr. Fan maintains his "sell" rating and  $28 price target on the stock.

(Amounts are in US$.)

Comments

[Inzight:]

Wow I have a few friends at Thomson Financials in Canada - last I checked they were still adding equipments to the new office... guess not!!

mining101.blogspot.com...

2008 Sep 21 07:22 PM