Thomson Reuters Triumphs in Q1 Backed by AI Product Roadmap and Strategic Acquisitions

Zinger Key Points
  • Thomson Reuters Q1 revenue climbs 8% to $1.89B, topping estimates; adjusted EPS of $1.11 outperforms expectations.
  • "Big 3" segments drive Thomson Reuters' growth, with Legal, Corporates, and Tax & Accounting up 10% organically.

Thomson Reuters Corp (NYSE: TRI) reported fiscal first-quarter 2024 revenue growth of 8% year-on-year to $1.89 billion, beating the analyst consensus of $1.86 billion

The business information services provider’s adjusted EPS of $1.11 beat the analyst consensus of $0.95. The stock price gained after the print.

Organic revenues increased by 9%, driven by 9% growth in recurring revenues (76% of total revenues). 

The “Big 3” segments (Legal Professionals, Corporates, and Tax & Accounting Professionals) collectively comprised 83% of total revenues and reported organic revenue growth of 10%. 

Legal Professionals’ revenue grew by 1% Y/Y to $721 million, Corporates’ revenue rose 17% Y/Y to $507 million, and Tax & Accounting Professionals’ revenue increased by 16% Y/Y to $328 million.

Reuters News revenue grew 20% year over year to $210 million, while Global Print revenue fell 10% year over year to $124 million.

Adjusted EBITDA margin expanded 390 bps to 42.7%. 

Thomson Reuters generated $271 million in free cash flow and held $1.9 billion in cash and equivalents as of March 31, 2024. 

Steve Hasker, President and CEO of Thomson Reuters said, “With an exciting AI product roadmap and strategic acquisitions shaping our core operations, we are confident we will continue to lead the way in transforming professional work.”

FY24 Outlook: Thomson Reuters expects revenue of $7.24 billion—$7.27 billion (prior $7.24 billion), against a consensus of $7.26 billion.

Thomson Reuters stock gained 17% in the last 12 months. Investors can gain exposure to the stock via Global X Artificial Intelligence & Technology ETF AIQ and Xtrackers MSCI All World Ex US Hedged Equity ETF DBAW.

Thomson Reuters Stock Prediction 2024

Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.

Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at Thomson Reuters, an investor could make an assessment about a stock's long term prospects using a moving average and trend line. If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line. For Thomson Reuters, the 200-day moving average sits at $140.63, according to Benzinga Pro, which is below the current price of $165.84. For more on charts and trend lines, see a description here.

Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.

Price Action: TRI shares were trading higher by 9.05% to $165.19 on the last check Thursday.

Photo by ClimbWhenReady via shutterstock

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