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Thomson Reuters (TRI) Q4 Earnings: What Awaits the Stock?

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Thomson Reuters Corporation (TRI - Free Report) is slated to report fourth-quarter 2016 results before the market opens on Feb 9. In the previous quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 6 cents.

Notably, in the trailing four quarters, the company surpassed the Zacks Consensus Estimate on every occasion with a positive earnings surprise of 8.93%. However, it remains to be seen if Thomson Reuters will be able to keep its positive earnings surprise alive this time.

Let’s see how things are shaping up for this announcement.

Zacks Model Shows Unlikely Earnings Beat

Our proven model does not conclusively show that Thomson Reuters is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen.

Thomson Reuters has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at 58 cents. The company carries a Zacks Rank #4 (Sell), which when combined with ESP of 0.00% makes a surprise prediction difficult. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Thomson Reuters Corp Price and EPS Surprise

 

Thomson Reuters Corp Price and EPS Surprise | Thomson Reuters Corp Quote

Factors Influencing This Quarter

During the quarter, the company unveiled Checkpoint Engage, its next-generation online audit solution to help auditors streamline their audit workflow more efficiently. Also, it introduced many other solutions for its customers to help make their work simpler and improve their output quality. Such enhancements are likely to have an impact in the company’s bottom-line in the yet to-be-reported quarter.

Management remains optimistic about the company’s future performance, given its constant endeavors to implement core strategies and progress toward achieving its financial goals. We believe that its cost-containment efforts, share buyback plan and impressive performance of the underlying subscription revenues (which account for most of the total revenue) bode well. On the other hand, adverse currency fluctuations may play a spoilsport in the quarter to be reported.

The company’s core subscription businesses continued to perform well and it is encouraging to see its Financial business reporting positive organic revenue growth. The company has been working tirelessly to achieve its earnings target for 2017. The company also intends to keep improving its free cash flow per share. Further, the company aims to boost its organic growth via strategic investments in its highest growth market.

Stocks Poised to Beat Earnings Estimates

Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:

Suncor Energy Inc. (SU - Free Report) has an Earnings ESP of +9.52% and a Zacks Rank #1.You can see the complete list of today’s Zacks #1 Rank stocks here.

BP p.l.c. (BP - Free Report) has an Earnings ESP of +12.50% and a Zacks Rank #3.

Allergan plc has an Earnings ESP of +1.58% and a Zacks Rank #3.

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