In This Article:
The quarterly results for Thomson Reuters Corporation (TSE:TRI) were released last week, making it a good time to revisit its performance. It was a credible result overall, with revenues of US$1.9b and statutory earnings per share of US$0.96 both in line with analyst estimates, showing that Thomson Reuters is executing in line with expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Thomson Reuters after the latest results.
Following the latest results, Thomson Reuters' 17 analysts are now forecasting revenues of US$7.49b in 2025. This would be a credible 3.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to plunge 29% to US$3.37 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$7.52b and earnings per share (EPS) of US$3.50 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.
See our latest analysis for Thomson Reuters
It might be a surprise to learn that the consensus price target was broadly unchanged at CA$259, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Thomson Reuters, with the most bullish analyst valuing it at CA$290 and the most bearish at CA$210 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 4.0% growth on an annualised basis. That is in line with its 4.3% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 6.8% annually. So although Thomson Reuters is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.