Thomson Reuters Q4 Earnings Beat Market; Sees Organic Revenue Growth In Q1, FY25, FY26; Stock Down

(RTTNews) - Thomson Reuters Corp. (TRI.TO), while reporting weak fourth-quarter earnings, but above market estimates, on Thursday issued outlook for first quarter, fiscal 2025 and 2026, expecting organic revenue growth and margin expansion.

In the pre-market activity on the NYSE, Thomson Reuters shares were losing around 2.6 percent to trade at $164.86.

For the first quarter, the company expects its organic revenue growth to be in the range of 5 percent to 6 percent and its adjusted EBITDA margin to be approximately 40 percent.

For fiscal 2025, total revenue growth is projected to be 3 percent to 3.5 percent and organic Revenue Growth of 7 percent to 7.5 percent. Adjusted EBITDA Margin of around 39 percent is expected, higher than 38.2 percent last year.

For 2026, the company targets an organic revenue growth range of 7.5 percent - 8.0 percent, driven by approximately 9.5 percent growth for the "Big 3" segments. The company targets adjusted EBITDA margin expansion by at least 50 basis points.

In the fourth quarter, Thomson Reuters' earnings came in at $587 million or $1.30 per share, compared with $678 million, or $1.49 per share, last year.

Adjusted earnings were $454 million or $1.01 per share for the period. Analysts on average had expected the company to earn $0.97 per share. Analysts' estimates typically exclude special items.

The company's revenue for the period rose 5.2% to $1.909 billion from $1.815 billion last year. The Street is looking for revenues of $1.91 billion.

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