Nucor earnings beat by $0.08, revenue fell short of estimates
On Monday, JPMorgan analyst Doug Anmuth adjusted the price target for Criteo S.A. (NASDAQ:CRTO) stock, reducing it to $27.00 from the previous $39.00, while maintaining a Neutral rating on the company’s shares. The stock, currently trading at $29.47, appears undervalued according to InvestingPro analysis, which shows strong fundamentals including a perfect Piotroski Score of 9 and a healthy balance sheet with more cash than debt. The revision follows Criteo’s first-quarter performance, which generated $1.93 billion in revenue and $302.13 million in EBITDA over the last twelve months. Despite these solid metrics, the company faced a reduction in its 2025 revenue guidance. This change is attributed to limited macroeconomic visibility and a strategic shift in Retail Media by two of its clients. [Get access to 12+ additional exclusive InvestingPro Tips and comprehensive financial analysis for Criteo in the Pro Research Report.]
Criteo now anticipates its 2025 revenue growth to be in the low single-digit percentage range year-over-year, adjusted for foreign exchange, a decrease from the previously expected mid-single-digit percentage range. This adjustment comes amid softer trends observed in April and the management’s belief that macroeconomic uncertainty could impact the pace of client spending and lower advertising budgets, particularly in discretionary categories.
The company is also facing specific challenges as its largest Retail Media Partner plans to discontinue managed services and reduce brand demand sales services in November. Moreover, Uber (NYSE:UBER) Eats is set to end its partnership with Criteo in the U.S. beginning in the third quarter, opting instead for CART’s Carrot Ad solution for its U.S. consumer packaged goods digital advertising. These changes are expected to create approximately $25 million in headwinds for Criteo in 2025, primarily in the fourth quarter, and around $75 million across the first ten months of 2026.
Despite these near-term obstacles, Criteo’s new CEO Michael Komasinski is focused on reinvigorating growth and fortifying its resilience. The company maintains strong financial health with a current ratio of 1.22 and trades at an attractive P/E ratio of 12.05, suggesting potential value for investors. InvestingPro data reveals the company’s robust free cash flow yield and efficient capital allocation, with management actively buying back shares to enhance shareholder value. The company aims to expand its Retail Media leadership, enhance Performance Media execution, and improve its platform. Investments will be directed toward product innovation, partner integrations, including those with Microsoft (NASDAQ:MSFT), and the development of new channels and formats. Criteo is also positioning itself to seize a larger share of its $50 billion Retail Media serviceable addressable market, with a 2025 adjusted EBITDA margin guidance of 33%-34%, implying a year-over-year margin contraction of approximately 80-180 basis points due to growth investments.
In the longer term, Criteo anticipates that Google (NASDAQ:GOOGL)’s decision to postpone the elimination of third-party cookies will provide a modest benefit in 2025 and bolster the long-term positioning of its Performance Media segment. JPMorgan acknowledges Criteo’s status as a leading Retail Media player with comprehensive funnel capabilities supported by strong data and artificial intelligence enhancements. However, the firm awaits improved revenue growth against macroeconomic and Retail Media challenges, as well as consistent execution. Consequently, JPMorgan has lowered its 2026 revenue estimate for Criteo by approximately 6% and its 2026 adjusted EBITDA estimate by around 12%. The December 2025 price target of $27 is based on an estimated 2026 adjusted EBITDA of $367 million, valued at roughly 3 times earnings.
In other recent news, Criteo S.A. reported first-quarter results that exceeded analyst expectations, with adjusted earnings per share reaching $1.10, surpassing the consensus estimate of $0.78. The company’s revenue was reported at $451 million, significantly higher than the anticipated $259.76 million. Criteo’s Contribution ex-TAC, a key profitability metric, rose 4% year-over-year to $264.4 million, while adjusted EBITDA increased by 30% to $92.1 million. Despite these strong results, Susquehanna has adjusted its price target for Criteo from $38.00 to $30.00, while maintaining a Neutral rating. This revision comes after Criteo disclosed that two significant retail media clients plan to scale back their partnerships later this year, potentially affecting future growth. Susquehanna also cited broader economic factors contributing to softer trends for Criteo. The company ended the first quarter with $286 million in cash and cash equivalents and repurchased $56 million worth of shares. Criteo’s CFO emphasized the company’s resilient business model and strong financial foundation amidst macroeconomic uncertainties.
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