Thomson Reuters Reports Third Quarter 2024 Financial Results
Intellectia.AI
Thomson Reuters Reports Third Quarter 2024 Financial Results
Thomson Reuters (TSX/NYSE: TRI) reported its financial results for the third quarter ending September 30, 2024.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | Year-over-Year Change | Q2 2024 | Quarter-over-Quarter Change | Consensus Estimate |
|---|---|---|---|---|---|---|
| Total Revenue | $1.80B | $1.67B | +8% | $1.78B | +1% | $1.71B |
| Diluted EPS | $0.67 | $0.80 | -16% | $0.80 | -16% | $0.77 |
| Adjusted EPS | $0.80 | $0.82 | -2% | $0.66 | +21% | Not Provided |
The slight revenue outperformance compared to the consensus is attributed to continued strong organic growth in major segments, although earnings per share did not meet expectations due to elevated tax expenses.
Segment Revenue Performance
| Segment | Q3 2024 Revenue | YoY Growth |
|---|---|---|
| Legal Professionals | $745M | +8% |
| Corporates | $437M | +12% |
| Tax & Accounting | $221M | +11% |
| Reuters News | $199M | +10% |
| Global Print | $128M | -6% |
The 'Big 3' segments, comprising Legal Professionals, Corporates, and Tax & Accounting Professionals, collectively reported strong organic revenue growth of 9%, aligning with the company’s raised guidance.
Key Developments and Operational Highlights - Raised full-year organic revenue growth outlook for the company to approximately 7%. - Raised growth outlook for the 'Big 3' to approximately 8.5%. - Announced agreement to sell the FindLaw business. - Increased investment in AI to over $200 million in 2024. - Completed strategic acquisitions of Safe Sign Technologies and Materia.
Comments from Company Officers Steve Hasker, President and CEO, noted the good revenue momentum and emphasized ongoing innovation and strategic investments, particularly in AI, underscoring the company’s commitment to value creation.
Dividends and Share Repurchase Program - A quarterly dividend of $0.54 per share is scheduled for December 10, 2024, for shareholders on record as of November 21, 2024.
Forward Guidance The company expects fourth-quarter organic revenue growth of around 5% and an adjusted EBITDA margin of approximately 37%, maintaining a cautious outlook due to macroeconomic uncertainties.
Stock Price Movement Post-earnings, Thomson Reuters' stock experienced a modest increase of 0.15%, indicating a generally positive market response to the earnings release.
Overall, Thomson Reuters demonstrated robust performance in its key segments, outperforming revenue expectations while facing challenges in earnings, reflective of increased expenses and tax impacts. The company continues to focus on innovation and strategic investments to drive growth.
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