UK's RELX H1 revenue slightly misses estimates
UK's RELX H1 revenue slightly misses estimates
Overview
UK analytics provider's H1 revenue grew 7% underlying, slightly missing analyst expectations
Adjusted EPS for H1 rose 11% at constant currency
Company completed £1.75 bln of previously announced £2.25 bln share buyback in H1
Outlook
RELX expects strong underlying growth in revenue and adjusted operating profit for the full yr
Company anticipates strong growth in adjusted EPS on a constant currency basis for the full yr
RELX says positive momentum across the group is expected to continue through the full yr
Result Drivers
SEGMENT GROWTH - Co said strong underlying growth was driven by continued strong growth in Risk, improved growth in Scientific, Technical & Medical and Legal, and ongoing growth in Exhibitions
BUSINESS MIX SHIFT - Ongoing shift towards higher growth analytics and decision tools supported long-term growth trajectory
AI AND COST CONTROL - Co said use of artificial intelligence enabled faster product launches and helped manage cost growth below revenue growth, supporting margin improvement
Company press release: ID:nRSW4826Na
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue | Slight Miss* | GBP 4.87 bln | GBP 4.91 bln (3 Analysts) |
H1 Adjusted Operating Profit | Beat | GBP 1.73 bln | GBP 1.71 bln (1 Analyst) |
H1 Adjusted Pretax Profit | Beat | GBP 1.59 bln | GBP 1.56 bln (1 Analyst) |
H1 Dividend |
| GBP 0.21 |
|
H1 Operating Profit |
| GBP 1.59 bln |
|
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the it services & consulting peer group is "buy"
Wall Street's median 12-month price target for Relx PLC is GBp3,140.00, about 28% above its July 22 closing price of GBp2,454.00
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 17 three months ago
Reuters Recommended Reads
July 21 - MSCI Q2 revenue slightly beats; FY operating expense outlook lifted
July 21 - Equifax Q2 revenue meets on USIS growth; doubles AI cost reduction target
July 22 - UK's Skillcast H1 revenue up on subscription growth; AI-driven gains lift margins
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)