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Investing.com -- Shares of Stroeer SE & Co KGaA (XETRA:SAX) jumped 8% following the company’s fourth-quarter earnings report, where it provided positive guidance for the first quarter of 2025, particularly in its Out-of-Home (OOH) segment.
Despite reporting fourth-quarter revenue that fell short of consensus estimates, the company’s adjusted EBITDA exceeded expectations, and it forecasted robust OOH revenue growth for the upcoming quarter.
Stroeer reported fourth-quarter 2024 revenue of €586 million, a slight 2% miss compared to company consensus. However, adjusted EBITDA for the quarter was €206 million, representing a margin of 35.1% and coming in 2% ahead of consensus.
Organic growth for the quarter was recorded at 3.1%, below the consensus estimates of 5.8%. The company’s adjusted free cash flow for 2024 stood at €80.6 million, with net debt at €837.4 million and a leverage ratio of 2.14x.
Looking ahead to the first quarter of 2025, Stroeer is guiding for OOH revenue growth of 13-14% year-over-year (YoY), which includes a 2 percentage point contribution from the recent RBL acquisition. This guidance significantly surpasses the Visible Alpha Consensus (VA Cons) of 7% YoY growth. Additionally, the company anticipates low-to-mid single digit growth in its Digital & Dialog segment, aligning with VA Cons expectations of a 4% increase YoY.
For Statista & Asam, Stroeer expects revenue growth to be in line with the first quarter of 2024, which had reported a 4.8% increase YoY, though this is slightly below the VA Cons projection of 9% YoY growth.
Citi analysts have commented on the earnings report, noting, "The OOH revenue guidance is stronger than expected but the guidance for Statista & Asam is slightly below expectations."
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