RELX Earnings Prediction
The chart below shows how RELX performed 10 days before and after its earnings report, based on data from the past quarters. Typically, RELX sees a -3.01% change in stock price 10 days leading up to the earnings, and a -6.82% change 10 days following the report. On the earnings day itself, the stock moves by +0.91%. This data can give you a slight idea of what to expect for the next quarter's release.
RELX Key Earning Data
RELX Earnings Analysis
Positive
Strong Revenue Performance: Underlying revenue growth was 7%, indicating strong overall performance.
Operating Profit Growth: Underlying adjusted operating profit growth was 10%, reflecting effective cost management and operational efficiency.
Earnings Growth at Constant Currency: Adjusted earnings per share grew by 9% at constant currency, showcasing profitability improvements.
Dividend Increase Confidence: A proposed 7% increase in the full year dividend demonstrates confidence in financial health and shareholder returns.
Risk Performance Highlights: All four business areas performed well, with Risk showing 8% revenue growth and 9% profit growth, driven by AI-enabled analytics.
Sales Growth in Compliance Solutions: Business Services saw strong new sales in Financial Crime Compliance and Digital Fraud & Identity Solutions.
Revenue and Profit Growth: STM achieved 4% revenue growth and 5% profit growth, with a significant increase in article submissions and publications.
Legal Revenue Improvement: Legal revenue growth improved to 7%, with a shift towards higher-value legal analytics contributing to profit growth.
Exhibition Revenue Growth: Exhibitions delivered an impressive 11% revenue growth, benefiting from a favorable comparison to the previous year and improved profitability.
Improved Operating Margin: The adjusted operating margin improved by nearly 1 percentage point to 33.9%, indicating enhanced operational efficiency.
Strong Cash Conversion: Cash conversion remained strong at 97%, contributing to a reduction in leverage to 1.8x, below the typical range.
Strategic Portfolio Management: The company completed five acquisitions and seven disposals, indicating strategic portfolio management and focus on high-value opportunities.
Share Buyback Commitment: The share buyback program of £1 billion reflects a commitment to returning capital to shareholders.
Negative
Revenue Growth Slowdown: Underlying revenue growth was 7%, which, while positive, indicates a slowdown compared to previous years' growth rates.
STM Revenue Challenges: The STM segment showed only 4% underlying revenue growth, suggesting challenges in this area as remaining print revenues shrink faster than historical averages.
Revenue Growth Challenges: Total revenue growth at constant currency was only 6%, indicating potential issues with currency fluctuations affecting overall performance.
Revenue Growth Impacted by Currency: In sterling, total revenue growth was just 3%, impacted by the strength of sterling against the dollar and euro, which could affect international competitiveness.
Acquisition Spending Analysis: Acquisition spend was below the normal range at £195 million, which may indicate a lack of growth opportunities or strategic hesitance.
Increased Effective Tax Rate: The effective tax rate increased to 22.5%, up from the prior year, which could impact net profit margins going forward.
Profitability Concerns: Net profit growth was only 4% in sterling, suggesting that while revenue may be growing, profitability is not keeping pace as effectively as desired.
Net Debt Concerns: Year-end net debt increased slightly to just under £6.6 billion, which could raise concerns about financial leverage and future borrowing capacity.
RELX FAQs
How does RELX typically perform around its earnings report dates?
RELX's stock performance around earnings reports can vary, but historical data shows specific patterns, such as a -3.01% change leading up to the report and a -6.82% change in the 10 days following the release.
Is RELX PLC (RELX) Q4 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
RELX Earning Call Sentiment
RELX Plc (NYSE:RELX) Q4 2024 Earnings Call Transcript

RELX.N
0.9%