Thomson Reuters Corp. (TSE: TRI) said on Tuesday that its fourth-quarter revenue came in better on a year over year basis. Profit in Q4, however, was weaker than in the same quarter last year.
Thomson Reuters shares were reported over 5% up in premarket trading on Tuesday and jumped another 3% on market open to trade at a per-share price of GBP62.52 per share versus GBP43 per share in March 2020. Here’s what you need to know about stock market volatility.
Reuters’ Q4 financial results versus analysts’ estimates
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Reuters said that its net income in the fourth quarter printed at GBP399.14 million versus the year-ago figure of GBP940 million. The company earned 80 pence per share in Q4, compared to a significantly higher GBP1.87 per share in the same quarter last year.
On an adjusted basis, the Canadian multinational earned 38.35 pence per share in the recent quarter. Reuters said that it generated GBP1.15 billion of revenue in Q4 – an increase from GBP1.12 billion last year. Reuters’ financial report comes only a day after the American multinational cybersecurity company, Palo Alto Networks, reported GBP101 million of loss in the fiscal second quarter.
According to FactSet, experts had forecast the company to post a slightly higher GBP1.16 billion of revenue in the fourth quarter. Their estimate for adjusted per-share earnings stood at a lower 33.38 pence per share.
In separate news from Canada, eCommerce giant, Shopify Inc. raised GBP1.10 billion on Tuesday via stock offering.
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Other prominent figures in Reuters’ earnings report
Other prominent figures in Reuters’ earnings report on Tuesday include GBP116.47 million of revenue from its News segment that remained unchanged from last year. Global print revenue saw a decline in Q4 to GBP125.71 million, compared to GBP139.20 million in the fourth quarter of last year.
According to Reuters, its fourth-quarter operating expenses were GBP780 million versus the year-ago figure of GBP850 million. The media conglomerate expressed plans of slashing its full-year operating expenses by GBP426 million. The Toronto-headquartered firm also said on Tuesday that its board raised its annual dividend to GBP1.15 per share – an increase of 7.1 pence.
Thomson Reuters Corp performed fairly upbeat in the stock market last year with an annual gain of more than 10%. At the time of writing, the Canadian multinational media conglomerate is valued at GBP28.32 billion and has a price to earnings ratio of 21.34.