Thomson Reuters (NASDAQ:TRI) Shares Down 8.3% After Earnings Miss

Key Points

• Thomson Reuters shares fell 8.3% after the company reported quarterly EPS of $0.81, missing the $0.82 consensus estimate and declining from $0.85 a year earlier. Quarterly revenue nevertheless increased 2.9% year over year.
• Analysts remain broadly positive, with 12 Buy ratings and six Holds producing a consensus “Moderate Buy” rating and an average price target of $127.99.
• Institutional investors own 17.31% of Thomson Reuters, while the company trades at a market capitalization of about $49.08 billion and a P/E ratio of 30.22.

Thomson Reuters Corp (NASDAQ:TRI - Get Free Report) shares dropped 8.3% during trading on Tuesday following a dissappointing earnings announcement. The stock traded as low as $107.35 and last traded at $112.1360. Approximately 341,309 shares were traded during mid-day trading, a decline of 84% from the average session volume of 2,136,876 shares. The stock had previously closed at $122.24.

The company reported $0.81 EPS for the quarter, missing the consensus estimate of $0.82 by ($0.01). Thomson Reuters had a net margin of 21.22% and a return on equity of 15.82%. During the same period in the previous year, the company earned $0.85 EPS. The company's quarterly revenue was up 2.9% compared to the same quarter last year.

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on the company. RBC Dominion Securities upped their price target on Thomson Reuters from $124.00 to $130.00 and gave the stock an "outperform" rating in a research note on Wednesday, October 28th. Jefferies Financial Group initiated coverage on shares of Thomson Reuters in a research note on Tuesday, October 20th. They issued a "buy" rating and a $130.00 price objective on the stock. Canaccord Genuity Group dropped their price objective on shares of Thomson Reuters from $132.50 to $129.50 and set a "buy" rating on the stock in a research note on Thursday, October 22nd. Scotia cut their price objective on shares of Thomson Reuters from $138.00 to $135.00 and set a "sector outperform" rating for the company in a research report on Thursday, August 6th. Finally, Weiss Ratings upgraded shares of Thomson Reuters from a "hold (c-)" rating to a "hold (c)" rating in a research note on Thursday, October 15th. Twelve equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $127.99.

Hedge Funds Weigh In On Thomson Reuters

A number of large investors have recently modified their holdings of TRI. PNC Financial Services Group Inc. boosted its position in Thomson Reuters by 1.3% during the first quarter. PNC Financial Services Group Inc. now owns 9,834 shares of the company's stock worth $885,000 after purchasing an additional 130 shares in the last quarter. Kestra Advisory Services LLC grew its holdings in Thomson Reuters by 1.4% in the first quarter. Kestra Advisory Services LLC now owns 9,682 shares of the company's stock valued at $871,000 after purchasing an additional 134 shares during the last quarter. SBI Securities Co. Ltd. grew its holdings in Thomson Reuters by 21.0% in the third quarter. SBI Securities Co. Ltd. now owns 951 shares of the company's stock valued at $93,000 after purchasing an additional 165 shares during the last quarter. Griffin Asset Management Inc. increased its position in shares of Thomson Reuters by 1.4% in the first quarter. Griffin Asset Management Inc. now owns 12,646 shares of the company's stock valued at $1,138,000 after buying an additional 175 shares in the last quarter. Finally, Hillsdale Investment Management Inc. increased its position in shares of Thomson Reuters by 25.3% in the first quarter. Hillsdale Investment Management Inc. now owns 907 shares of the company's stock valued at $82,000 after buying an additional 183 shares in the last quarter. 17.31% of the stock is owned by hedge funds and other institutional investors.

Thomson Reuters Trading Down 7.4%

The firm has a market cap of $49.08 billion, a PE ratio of 30.22, a PEG ratio of 2.23 and a beta of 0.75. The company has a debt-to-equity ratio of 0.12, a current ratio of 0.51 and a quick ratio of 0.51. The business has a 50-day moving average price of $105.15 and a two-hundred day moving average price of $97.33.

Thomson Reuters Company Profile

Thomson Reuters is a global provider of information, software and technology solutions for professionals and institutions. The company serves customers in the legal, tax, accounting, audit, corporate, government, risk and compliance sectors, as well as the media industry. Its offerings combine authoritative content with workflow tools, data analytics and artificial intelligence.

Key products and services include Westlaw and Practical Law for legal research and practice management; Checkpoint and ONESOURCE for tax and accounting professionals; Confirmation for audit-related workflows; and CoCounsel, an AI-assisted legal technology platform.

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