Stock Track | Thomson Reuters Plummets 5.23% Despite Q3 Earnings Beat, Legal Segment Concerns Weigh

Stock Track11-04

Thomson Reuters (TRI) shares plummeted 5.23% in early trading on Tuesday, despite the company reporting better-than-expected third-quarter results. The information services provider posted adjusted earnings of $0.85 per share, surpassing the analyst consensus estimate of $0.83, and revenue of $1.782 billion, slightly above the expected $1.779 billion.

However, investors appeared to focus on the concerning performance of the company's Legal Professionals segment, which saw revenues decrease by 2% at constant currency. This decline in a key business unit may have sparked worries about Thomson Reuters' growth prospects in its core markets. Additionally, while the company reaffirmed its full-year 2025 outlook for all metrics, some market participants might have been expecting more robust guidance given the earnings beat.

The sharp downturn comes as a surprise, considering the initial positive premarket reaction to the earnings report. Canaccord Genuity analyst Aravinda Galappatthige maintained a Hold rating on Thomson Reuters with a price target of $182.00, suggesting limited upside potential. The dramatic shift in sentiment indicates that investors may be reassessing the company's valuation and growth trajectory in light of the mixed results across its business segments.

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