Thomson Reuters Stock Gains On Q2 Earnings, New $1.2B Buyback Program

Thomson Reuters Corp TRI reported second-quarter FY21 revenue growth of 9% year-on-year to $1.53 billion, beating the consensus by $40 million.
Organic revenues increased 7%, driven by recurring revenues, transactions, Reuters News, and Global Print revenues. 2% favorable impact from foreign currency added to growth.
The "Big 3" segments (Legal Professionals, Corporates, and Tax & Accounting Professionals) collectively comprised 80% of total revenues and reported organic revenue growth of 7%. Legal Professionals revenue grew 9% Y/Y to $673 million, Corporates revenue rose 6% Y/Y to $348 million, and Tax & Accounting Professionals revenue increased 17% Y/Y to $197 million.
Reuters News revenue improved 9% Y/Y to $168 million, and the Global Print revenue was up 9% Y/Y to $147 million.
Adjusted EBITDA margin contracted 140 bps to 32.7% due to higher costs in the Global Print segment.
Adjusted EPS of $0.48 beat the analyst consensus by $0.05.
Thomson Reuters generated $462 million in operating cash flow and held $2.3 billion in cash and equivalents. It also announced a $1.2 billion share buyback program.
The results reflect customer confidence and tailwind as customers spend on products and solutions that fit their workflows and improve their professional lives, which are rapidly evolving, CEO Steve Hasker stated.
Outlook: Thomson Reuters raised Q3 revenue outlook to $1.494 billion - $1.501 billion.
Price action: TRI shares traded higher by 5.65% at $111.78 on the last check Thursday.

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