Thomson Reuters Earnings: Mostly Steady and Only Minor Tweaks to Guidance

As expected, Thomson Reuters subscription-heavy business was mostly steady in the second quarter of 2024. Second-quarter organic revenue grew 6%, which compares with 9% in the first quarter and 7% in the fourth quarter. We are not concerned with the deceleration sequentially, as there were some one-time and seasonal items affecting first-quarter comparisons. In addition, we note that organic recurring revenue was 8% in the quarter compared with 9% in the first quarter. While the results were steady, revenue and adjusted EBITDA were both 1% below the FactSet consensus, and we think that partially explains the modestly negative market reaction. We will maintain our narrow moat rating and $137 fair value estimate on Thomson Reuters' shares.