Q: Any insights as what caused the 4.51% (4.63% in the US markets) drop in the stock value for TRI yesterday? Or is it, in your opinion, just one of these market jitters not to be concerned with?
5i Research Answer:
TRI reported earnings May 2, and matched estimates for sales and beat EPS estimates by 2%. However TRI did lower its guidance for the year, expecting growth of 3% to 3.5% rather than 4.5% to 5%. This resulted in two downgrades by brokers. The stock has been strong and profit-taking kicked in. So, certainly more than 'jitters' but we would not change a positive opinion on the company. There were few surprises in the release and the guidance is not surprising considering macro pressures.