Shares of Thomson Reuters (TRI) are up 3% after the media and information company issued third-quarter financial results that surpassed analysts’ forecasts.
The Toronto-based company, which owns the Reuters news agency, announced earnings per share (EPS) of $0.80, which beat Wall Street expectations that called for a profit of $0.76. Revenue in the July through September quarter totaled $1.72 billion, which was ahead of analyst forecasts of $1.71 billion. Sales were up 8% year-over-year.
The positive results were attributed to investments the company is making in generative artificial intelligence (AI). Thomson Reuters has committed to spending more than $200 million on AI investments this year.
Raised Guidance
The company’s current AI products include “CoCounsel,” an AI assistant that can help draft documents for legal professionals. Revenue at Thomson Reuters’ legal, corporate, and tax and accounting business unit rose 9% during Q3. Revenue from the Reuters news division rose 10%, said the company in its earnings statement.
Looking ahead, Thomson Reuters said that it now expects full-year revenues to grow about 7%. That’s up from an earlier estimate that called for 6.5% sales growth. The stock of Thomson Reuters has risen 18% this year and is up 34% over the last 12 months.
Is TRI Stock a Buy?
The stock of Thomson Reuters has a consensus Moderate Buy rating among 10 Wall Street analysts. That rating is based on four Buy, six Hold, and no Sell recommendations issued in the past three months. The average TRI price target of $234.49 implies 0.89% downside risk from current levels.
Read more analyst ratings on TRI stock
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
