Street Calls of the Week
Investing.com -- German advertising company Stroeer has lowered its full-year guidance, citing weakness in the advertising market amid an uncertain macroeconomic environment.
In an ad-hoc statement released Friday, Stroeer revised its outlook, now expecting revenues and adjusted EBITDA to be on par with the previous year. This marks a significant change from its earlier forecast, which had anticipated organic revenue growth similar to 2024 levels (6.4%) and adjusted EBITDA growth exceeding that rate.
The announcement follows a similar warning from ProSieben earlier this week, suggesting broader challenges across the German advertising sector.
Despite the guidance cut, Stroeer shares rose 1.8% in Friday trading, indicating that investors may have already factored in the possibility of weaker performance.
According to Bernstein analysts, the news was "to some extent anticipated" following ProSieben’s warning and the cautious development of the advertising market in late summer. They noted that some of these concerns had already been reflected in Stroeer’s share price, which has experienced another decline since mid-August as September advertising trends began to emerge.
Analysts believe the warning is not related to Stroeer’s underlying business fundamentals but rather to broader market conditions.
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