EU and US could reach trade deal this weekend - Reuters
NEW YORK - Stagwell Inc. (NASDAQ:STGW) reported disappointing first quarter results on Thursday, with revenue falling short of estimates and a YoY decline, while earnings also fell short of expectations. The company reaffirmed its full-year outlook.
Stagwell shares were up 6.71% in pre-market trading following the release.
The marketing and communications company posted Q1 adjusted earnings per share of $0.12, missing the analyst consensus of $0.16. Revenue came in at $652 million, down 3% YoY but ahead of Wall Street estimates of $692.6 million.
Net revenue, which excludes billable costs, rose 6% YoY to $564 million. Excluding the company’s advocacy business, net revenue grew 9%.
"Despite the macro noise from tariffs, Stagwell’s first quarter results were in-line with our expectations, setting us up for a strong year ahead," said CEO Mark Penn. He highlighted double-digit growth in digital transformation, creativity and Stagwell Marketing Cloud capabilities.
The company reaffirmed its full-year 2025 guidance, projecting total net revenue growth of approximately 8% and adjusted EBITDA of $410 million to $460 million. Stagwell also expects adjusted EPS of $0.75 to $0.88 for the year.
CFO Frank Lanuto noted the company "effectively managed costs" in Q1, posting $81 million in adjusted EBITDA. He added that Stagwell has made "significant progress" in simplifying its capital structure and refinancing its revolving credit facility.
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