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Analysts' expectations of Q2 results

Wednesday 5 August 2009

Thomson Reuters reports its Q2 results on Thursday, but analysts are already weighing in on what they expect. The market consensus is C$3.3 billion in revenue and C$.43 earnings per share.

  • Drew McReynolds, RBC Capital Markets analyst, has pegged revenue for the quarter at C$3.28 billion with cash EPS of C$.44. He expects a less severe trough in organic revenue growth in markets in the first half of 2010 of -6.9 per cent from -8.5 per cent and further improvement in financial sector sentiment, keeping a “outperform” rating on the company by raising the price target to $37 from $34.
  • Phillip Huang, UBS analyst, says the key focus should be on the Markets division, which is "late cycle" and should move into negative territory after flat growth in the first quarter. "Thomson Reuters has rallied due to the consolidation," he said in a note to clients. "However, we believe organic revenue growth for Thomson Reuters is later cycle than the market expects." He expects an EPS at 40 cents and maintains a “sell” rating on the company, with a price target of $23.50.
  • Paul Steep, analyst with Scotia Capital, is far more bullish despite believing the second quarter of 2009 could be the company's "most challenging quarter since the credit crisis began" as IT budgets have been frozen in the first half of the year. "Our estimates remain significantly ahead of consensus, reflecting the significant upside of integration synergies in 2011 and beyond," he said in a note. "We continue to expect the firm to build on the quick integration wins delivered in 2008." He also forecasts revenues of C$3.2 billion and EPS of C$.44, but has a target price of C$47 on a “sector outperform” rating.
SOURCE
Seeking Alpha