Thomson Reuters (TRI) Q2 Earnings Beat, Revenues Miss - Tale of the Tape
Thomson Reuters Corporation (TRI), provider of information related to financial & risk, legal, tax & accounting, and intellectual property & science, came out with second-quarter 2015 results, wherein adjusted earnings of 52 cents a share beat the Zacks Consensus Estimate of 49 cents while faring a penny better than the prior year quarter’s figure.
Management reiterated its guidance for 2015, where it expects organic revenues to increase, adjusted EBITDA margin to lie in the band of 27.5%- 28.5%, underlying operating profit margin to come in the a 18.5% - 19.5% range and free cash flow to range from $1.6 -$1.8 billion.
Earnings Estimate Revision: The Zacks Consensus Estimate has moved up marginally in the last 30 days. Moreover, if we look at Thomson Reuters’ performance in the trailing four quarters (including the quarter under review), the company underperformed the Zacks Consensus Estimate by an average of 2.2%.
Revenues: Thomson Reuters generated revenue of $3,038 million, falling short of the Zacks Consensus Estimate of $3,061 million. Also, revenues slipped 4% year over year, bearing the brunt of currency headwinds. Excluding impact of currency headwinds, revenues grew 2%.
Key Events: During the quarter, Thomson Reuters announced a quarterly dividend of 33.5 cents a share, payable on Sep 15, 2015 to shareholders of record as on Aug 20. Also, during the quarter, the company bought back 8.5 million shares for $348 million.
Zacks Rank: Currently, Thomson Reuters carries a Zacks Rank #3 (Hold) which is subject to change following the earnings announcement.
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