- Thomson Reuters Corp (NYSE:TRI) reported third-quarter FY21 revenue growth of 6% year-on-year to $1.53 billion, beating the consensus of $1.50 billion.
- Organic revenues increased 5%, driven by recurring revenues and transactions revenues. 1% favorable impact from foreign currency added to growth.
- The “Big 3” segments (Legal Professionals, Corporates, and Tax & Accounting Professionals) collectively comprised 80% of total revenues and reported organic revenue growth of 6%. Legal Professionals revenue grew 7% Y/Y to $682 million, Corporates revenue rose 7% Y/Y to $356 million, and Tax & Accounting Professionals revenue increased 6% Y/Y to $175 million.
- Reuters News revenue improved 6% Y/Y to $164 million, and the Global Print revenue declined 3% Y/Y to $149 million.
- Adjusted EBITDA margin contracted 400 bps to 30% due to Change Program costs.
- Adjusted EPS of $0.46 beat the consensus of $0.38.
- Thomson Reuters generated $383 million in free cash flow and held $1.5 billion in cash and equivalents.
- Outlook: Thomson Reuters raised FY21 revenue growth outlook to 4.5% – 5.0% from 4.0% – 4.5%.
- It also lifted the free cash flow guidance to $1.2 billion from $1.1 billion – $1.2 billion.
- Price action: TRI shares traded lower by 0.22% at $118.46 on the last check Tuesday.
DA Davidson Maintains Buy on Rover Group, Lowers Price Target to $5.75
DA Davidson analyst Tom White maintains Rover Group (NASDAQ:ROVR) with a Buy and lowers the price target from $6 to $5.75.
