Thomson Reuters (NYSE: TRI) reported Q3 EPS of $0.57, $0.07 better than the analyst estimate of $0.50. Revenue for the quarter came in at $1.57 billion versus the consensus estimate of $1.59 billion.

GUIDANCE:

The company is maintaining its outlook for 2022 and 2023, as reflected in the table below, which incorporates the forecasted impacts associated with the Change Program, assumes constant currency rates, and excludes the impact of any future acquisitions or dispositions. Thomson Reuters believes that this type of guidance provides useful insight into the anticipated performance of its businesses.

The company expects its fourth-quarter 2022 revenue growth and EBITDA margin to be approximately in-line with its full-year 2022 outlook target. For the full year, capital expenditures as a percentage of revenues are likely to be at the upper end of the 7.5% - 8.0% guidance range, while the effective tax rate is expected to be at the lower end of the 19% - 21% outlook.

While we are maintaining our outlook for 2023, 2023 margins are trending towards the lower end of the current 39% - 40% range amid heightened inflation and select investments we are making to drive customer success and fund growth initiatives. Additionally, 2023 accrued capital expenditures as a percentage of revenues is trending towards the upper end of the current 6.0% - 6.5% range. Lastly, we expect that our 2023 effective tax rate will be approximately consistent with 2022.

We are maintaining our previously announced outlook on the basis of information and assumptions that we believe are reasonable. However, while the company's third-quarter 2022 performance provides it with increasing confidence about its 2022 outlook, the global economy recently has experienced substantial disruption due to concerns regarding economic effects associated with the macroeconomic backdrop and ongoing geopolitical risks. Any worsening of the global economic or business environment could impact the company's ability to achieve its outlook. The company intends to revisit its 2023 outlook in the first quarter of 2023 and provide an update in connection with its fourth-quarter and full-year 2022 earnings release.

For earnings history and earnings-related data on Thomson Reuters (TRI) click here.