Thomson Reuters Exceeds Expectations with 2024 Full Year Earnings Per Share

2 min read | February 10, 2025 06:30 PM EST | By Team Kalkine Media

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

Investors should be mindful of the single warning sign identified in the investment analysis of Thomson Reuters. Evaluating the company's true value can be intricate, but our comprehensive analysis simplifies the process. Discover whether Thomson Reuters could be undervalued or overvalued, supported by fair value estimates, potential risks, dividends, insider transactions, and its overall financial condition. Feel free to explore our detailed, free analysis for further insights.


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