Shares of Thomson Reuters (TRI) are up 5% after the Canadian media company issued third-quarter financial results that beat analyst forecasts on the top and bottom lines.
The Toronto-based company that owns the Reuters news agency reported earnings per share (EPS) of $0.80 U.S., which beat Wall Street expectations that called for a profit of $0.76 U.S.
Revenue in the quarter totaled $1.72 billion U.S., which was ahead of analyst forecasts of $1.71 billion U.S. Sales rose 8% from a year earlier.
Management attributed the strong results to investments the company is making in generative artificial intelligence (A.I.).
Thomson Reuters has committed to spending more than $200 million U.S. on A.I. investments this year alone.
The company’s current A.I. products include CoCounsel, a generative A.I. assistant that can help draft documents and locate information for people in the legal profession.
Revenue at Thomson Reuters’ legal, corporate, and tax and accounting businesses rose 9% during Q3 of this year. Reuters News revenue rose 10% in the period, said the company.
Looking ahead, Thomson Reuters said that it now expects full-year revenues to grow 7%, up from an earlier estimate of about 6.5% growth.
Before today (Nov. 5), the stock of Thomson Reuters had risen 15% this year to trade at $165.02 U.S. per share.
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