Thomson Reuters Beats on EPS But GAAP Results Lag

Seth Jayson, The Motley Fool
Updated

Thomson Reuters (TSX: TRI) reported earnings on July 30. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended June 30 (Q2), Thomson Reuters missed slightly on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank slightly. Non-GAAP earnings per share dropped. GAAP earnings per share shrank significantly.


Gross margins expanded, operating margins expanded, net margins shrank.

Revenue details
 Thomson Reuters reported revenue of $3.11 billion. The 12 analysts polled by S&P Capital IQ wanted to see revenue of $3.16 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 EPS came in at $0.48. The 14 earnings estimates compiled by S&P Capital IQ predicted $0.45 per share. Non-GAAP EPS of $0.48 for Q2 were 11% lower than the prior-year quarter's $0.54 per share. GAAP EPS of $0.30 for Q2 were 73% lower than the prior-year quarter's $1.11 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
 For the quarter, gross margin was 28.7%, 20 basis points better than the prior-year quarter. Operating margin was 18.9%, 280 basis points better than the prior-year quarter. Net margin was 7.8%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $3.12 billion. On the bottom line, the average EPS estimate is $0.44.

Next year's average estimate for revenue is $12.74 billion. The average EPS estimate is $1.83.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Thomson Reuters is hold, with an average price target of $32.61.

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The article Thomson Reuters Beats on EPS But GAAP Results Lag originally appeared on Fool.com.

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