Analyst Note| Rajiv Bhatia, CFA |
Thomson Reuters began 2021 on a high note with revenue and earnings topping expectations. Total first-quarter revenue of $1.58 billion beat the FactSet consensus estimate of $1.55 billion, while adjusted EPS of $0.58 easily beat the consensus estimate of $0.42 per share. Despite the strong quarter, the firm did tweak its 2021 revenue outlook a touch higher but maintained its adjusted EBITDA margin outlook of 30%-31% as investment spending is expected to ramp up throughout the year. We expect to maintain our narrow moat rating and $94 per share fair value estimate.