* Q1 adjusted EPS 66 cents vs forecast 61 cents
* Q1 revenues up 5.5% to $1.67 bln, also above forecast
* Lifts 2022 revenue growth estimate
* Reliance on recurring revenue insulates company - CFO
* Shares gain in early trading
NEW YORK, May 3 (Reuters) - Thomson Reuters Corp
raised its 2022 revenue forecast on Tuesday after
exceeding first quarter expectations on strong growth across its
core legal, tax and accounting, and corporate businesses.
The parent company of Reuters News said that while the
quarter gave it more confidence in its financial outlook, the
pandemic, geopolitical risks and any worsening of the economy
could hurt its ability to reach its goals.
The company, which also owns the Westlaw legal database and
the Checkpoint tax and accounting service, reported adjusted
earnings of 66 cents per share, 5 cents ahead of Wall Street
expectations.
Shares gained about 0.5% in early New York and Toronto
trading.
Total revenues rose 5.5% to $1.67 billion, just ahead of
expectations, and are now forecast to increase 5.5% this year,
up from an earlier estimate of about 5%.
"We're off to a good start in 2022," said CEO Steve Hasker.
"We're a little ahead of where we thought we'd be in terms of
our revenue growth trajectory and we're on track and executing
on our change program."
Thomson Reuters is wrapping up a two-year restructuring to
transition from a holding company to an operating company with
an emphasis on using artificial intelligence and technology to
improve client businesses.
It said 80% of its revenue was recurring, providing some
protection from unpredictable economic pressures.
CFO Mike Eastwood told analysts the company was raising
prices on some long-term contracts, but this would take a while
to show up in results.
The three main divisions - Legal Professionals, Tax &
Accounting Professionals, and Corporates - reported higher
quarterly sales, led by an 11% increase in the tax business.
Revenue at Reuters News rose 9%.
Reuters News makes about half its revenue from supplying
Refinitiv, a data company spun off from Thomson Reuters and now
owned by the London Stock Exchange Group (LSE). Thomson
Reuters holds a minority stake in the LSE worth about $7.2
billion as of Monday.
Thomson Reuters made two small purchases recently. In March,
it bought ThoughtTrace, an AI-powered legal technology company.
In April, it announced a deal to buy Gestta, an accounting
automation software company.
Funds for deals could be boosted next year when the company
can begin selling off its stake in the LSE. Executives said high
valuations had held back acquisitions, but they saw that
situation improving recently.
(Reporting by Ken Li and Nick Zieminski in New York
Editing by Mark Potter)