Highlights
- Revenue rose by 6.8% in FY 2024.
- Net income decreased by 17% in FY 2024.
- EPS exceeded expectations by 29%.
Thomson Reuters, listed as TSE:TRI, reported a revenue increase to US$7.26 billion, reflecting a 6.8% rise from the fiscal year 2023. However, net income faced a decline, falling by 17% to US$2.19 billion. The profit margin also narrowed to 30% from the previous year's 39%, with higher expenses contributing to this reduction. Earnings per share (EPS) stood at US$4.86, down from US$5.70 in 2023.
Performance Insights
The revenue figures were aligned with analyst projections, while EPS significantly surpassed expectations by 29%. The fiscal year's revenue was primarily driven by the Legal Professionals segment, which contributed US$2.92 billion, representing 40% of the total revenue. The cost of sales amounted to US$4.47 billion, accounting for 62% of total revenue, highlighting its effect on earnings. Moreover, non-operating gains contributed an additional US$273.0 million to earnings within the past year.
Looking forward, there is anticipation of a 6.1% average annual revenue growth over the next three years, aligning with the projected growth rate for the Professional Services industry in North America. As a recent performance note, Thomson Reuters shares appreciated by 2.4% from the previous week, showcasing positive market sentiment.
Risk Analysis
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