Overview
Marketing services firm's Q4 revenue slightly beat analyst expectations
Adjusted EPS for Q4 exceeded analyst estimates
Company announced $350 mln increase in stock repurchase program
Outlook
Stagwell forecasts 2026 net revenue growth of 8% to 12%
Company expects 2026 adjusted EBITDA between $475 mln and $525 mln
Stagwell anticipates 2026 adjusted EPS of $0.98 to $1.12
Result Drivers
DIGITAL TRANSFORMATION - Segment saw 13% net revenue growth, contributing to overall revenue increase
MARKETING CLOUD - Delivered 230% YoY net revenue growth, significantly boosting overall results
AI STRATEGY - Strategic pivot towards AI applications and services supported growth
Company press release: ID:nACSKRPxla
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Slight Beat* | $807 mln | $801.93 mln (8 Analysts) |
Q4 Adjusted EPS | Beat | $0.30 | $0.27 (7 Analysts) |
Q4 EPS | $0.05 | ||
Q4 Net Income | $13 mln | ||
Q4 Adjusted EBITDA | Miss | $129 mln | $130.37 mln (8 Analysts) |
Q4 Adjusted EBITDA Margin | 20.00% |
*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 6 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the advertising & marketing peer group is "buy"
Wall Street's median 12-month price target for Stagwell Inc is $8.00, about 52.7% above its March 9 closing price of $5.24
The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 5 three months ago
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.)
Comments