Thomson Reuters Issues Q4 View, Lifts FY24 Organic Growth View After Q3 Beats Market; Stock Climbs

(RTTNews) - Thomson Reuters Corp. (TRI.TO), while reporting weak third-quarter earnings, but above market estimates, on Tuesday issued fourth-quarter outlook, and raised organic revenue growth view for fiscal 2024.

In the pre-market activity on the NYSE, Thomson Reuters shares were climbing 15.8 percent to trade at $191.01.

For the fourth quarter, the company expects organic revenue growth to be around 5 percent and adjusted EBITDA margin to be approximately 37 percent.

Further, for fiscal 2024, the company now expects organic revenue growth of around 7 percent, higher than previously projected growth of around 6.5 percent.

The company also raised organic revenue growth outlook for "Big 3" to approximately 8.5 percent from previous view of around 8 percent increase.

Meanwhile, Thomson Reuters continues to expect revenue to grow nearly 7 percent year-on-year on a reported basis, with adjusted EBITDA margin of around 38 percent.

"Big 3" Segments' total revenue growth for the year is still expected to be around 8.5 percent on a reported basis, with adjusted EBITDA margin of around 43 percent.

In its third quarter, Thomson Reuters' profit decreased from the same period last year but beat the Street estimates.

The company's bottom line came in at $301 million, or $0.67 per share, compared to prior year's $367 million or $0.80 per share.

Adjusted earnings were $359 million or $0.80 per share for the period, compared to $0.82 per share last year.

Analysts on average had expected the company to earn $0.77 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

The company's revenue for the quarter rose 8.2 percent to $1.724 billion from $1.594 billion last year. The Street was looking for revenues of $1.71 billion for the quarter.

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