Analyst Note| Rajiv Bhatia, CFA |
Narrow-moat Thomson Reuters reported solid second-quarter results. Total revenue of $1.53 billion beat the FactSet consensus estimate of $1.49 billion, while adjusted EPS of $0.48 per share easily beat the consensus estimate of $0.43. Given the firm's business momentum, full-year revenue guidance was raised 50 basis points and firmwide adjusted EBITDA guidance increased 100 basis points at the midpoint. Thomson Reuters also announced plans to buy back up to $1.2 billion of its shares, a move we expect investors will be pleased with. Overall, we expect to increase our fair value estimate for the firm in a 5%-15% range.