Thomson Reuters’ fourth-quarter revenue comes in better than last year

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in his free… read more.
on Feb 23, 2021
  • Thomson Reuters’ fourth-quarter revenue comes in better than last year.
  • The Canadian multinational reports £399.14 million of net income in Q4.
  • Thomson Reuters raised its annual dividend to £1.15 per share on Tuesday.

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 £62.52 per share versus £43 per share in March 2020. Here’s what you need to know about stock market volatility.

Reuters’ Q4 financial results versus analysts’ estimates

Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.

Reuters said that its net income in the fourth quarter printed at £399.14 million versus the year-ago figure of £940 million. The company earned 80 pence per share in Q4, compared to a significantly higher £1.87 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 £1.15 billion of revenue in Q4 – an increase from £1.12 billion last year. Reuters’ financial report comes only a day after the American multinational cybersecurity company, Palo Alto Networks, reported £101 million of loss in the fiscal second quarter.

According to FactSet, experts had forecast the company to post a slightly higher £1.16 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 £1.10 billion on Tuesday via stock offering.

Other prominent figures in Reuters’ earnings report

Other prominent figures in Reuters’ earnings report on Tuesday include £116.47 million of revenue from its News segment that remained unchanged from last year. Global print revenue saw a decline in Q4 to £125.71 million, compared to £139.20 million in the fourth quarter of last year.

According to Reuters, its fourth-quarter operating expenses were £780 million versus the year-ago figure of £850 million. The media conglomerate expressed plans of slashing its full-year operating expenses by £426 million. The Toronto-headquartered firm also said on Tuesday that its board raised its annual dividend to £1.15 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 £28.32 billion and has a price to earnings ratio of 21.34.

Invest in crypto, stocks, ETFs & more in minutes with our preferred broker, eToro
10/10
67% of retail CFD accounts lose money