Earnings Update: Thomson Reuters Corporation (TSE:TRI) Just Reported Its First-Quarter Results And Analysts Are Updating Their Forecasts

The first-quarter results for Thomson Reuters Corporation (TSE:TRI) were released last week, making it a good time to revisit its performance. It was a credible result overall, with revenues of US$1.9b and statutory earnings per share of US$0.96 both in line with analyst estimates, showing that Thomson Reuters is executing in line with expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Our free stock report includes 1 warning sign investors should be aware of before investing in Thomson Reuters. Read for free now.

Following the latest results, Thomson Reuters' 17 analysts are now forecasting revenues of US$7.49b in 2025. This would be a modest 3.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to crater 29% to US$3.37 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$7.52b and earnings per share (EPS) of US$3.50 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

See our latest analysis for Thomson Reuters

It might be a surprise to learn that the consensus price target was broadly unchanged at CA$259, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Thomson Reuters, with the most bullish analyst valuing it at CA$290 and the most bearish at CA$210 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Thomson Reuters shareholders.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 4.0% growth on an annualised basis. That is in line with its 4.3% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 6.8% annually. So it's pretty clear that Thomson Reuters is expected to grow slower than similar companies in the same industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Thomson Reuters. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Thomson Reuters' revenue is expected to perform worse than the wider industry. The consensus price target held steady at CA$259, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Thomson Reuters analysts - going out to 2027, and you can see them free on our platform here.

Even so, be aware that Thomson Reuters is showing 1 warning sign in our investment analysis , you should know about...

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