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Was Thomson Reuters Corporation's (TSE:TRI) Earnings Growth Better Than The Industry's?
After reading Thomson Reuters Corporation's (TSX:TRI) most recent earnings announcement (31 March 2018), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. As a long term investor, I pay close attention to earnings trend, rather than the figures published at one point in time. I also compare against an industry benchmark to check whether Thomson Reuters's performance has been impacted by industry movements. In this article I briefly touch on my key findings. Check out our latest analysis for Thomson Reuters
Were TRI's earnings stronger than its past performances and the industry?
I look at data from the most recent 12 months, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. This technique allows me to assess different companies in a uniform manner using the most relevant data points. For Thomson Reuters, its most recent earnings (trailing twelve month) is US$1.41B, which, against the prior year's figure, has jumped up by 28.02%. Since these figures are fairly nearsighted, I have determined an annualized five-year figure for Thomson Reuters's earnings, which stands at US$843.75M This suggests that, generally, Thomson Reuters has been able to steadily raise its net income over the last couple of years as well.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I recommend you continue to research Thomson Reuters to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for TRI’s future growth? Take a look at our free research report of analyst consensus for TRI’s outlook.
- Financial Health: Is TRI’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
- Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
Valuation is complex, but we're here to simplify it.
Discover if Thomson Reuters might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
About TSX:TRI
Thomson Reuters
Operates as a content and technology company in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.
Adequate balance sheet second-rate dividend payer.
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