Thomson Reuters Earnings: Mostly Steady and Solid Outlook

Thomson Reuters finished 2023 with a decent quarter. Revenue of $1.82 billion was virtually in line with the FactSet consensus estimate of $1.83 billion while adjusted EBITDA and adjusted EPS edged out the consensus estimate by 1% and 8%, respectively. The firm’s 2024 revenue outlook aligned with consensus expectations but adjusted EBITDA was about 3% lighter. We will maintain our narrow moat rating but are tweaking our fair value estimate to $120 from $112 as higher revenue, particularly in 2025 and 2026, is partially offset by investment spending. While we see many positive aspects to Thomson Reuters’ business model, we view shares as pricey.