ADV Earnings Prediction
The chart below shows how ADV performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ADV sees a +3.38% change in stock price 10 days leading up to the earnings, and a -0.85% change 10 days following the report. On the earnings day itself, the stock moves by -1.68%. This data can give you a slight idea of what to expect for the next quarter's release.
ADV Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
939.27M
-7.89%
7.55%
Gross Margin
9.84%
33.88%
21.48%
Operating Margin
1.22%
-61.88%
-58.78%
Net Margin
-3.97%
36.43%
-69.32%
EPS
-0.13
-85.71%
-58.06%
No Data Available
ADV Earnings Analysis
Advantage Solutions Inc. Class A Common Stock Corporation (ADV.O) Earnings Conference Call
Positive
Revenue Increase Reported: 1. Revenue Growth: Advantage Solutions reported a 2% year-over-year increase in revenues to $802 million, excluding the deconsolidation of the European JV and pass-through costs.
Adjusted EBITDA Growth: 2. Adjusted EBITDA Increase: The company achieved an 8% increase in adjusted EBITDA, reaching $101 million, reflecting strong performance in Experiential and Retailer Services.
Experiential Services Revenue Surge: 3. Experiential Services Performance: Revenues for Experiential Services surged by 12% to $254 million, with adjusted EBITDA growing 41% to $23 million, driven by increased client demand and event activity.
Client Retention Success: 4. Client Retention Rate: Advantage Solutions boasts a 95% retention rate for its largest clients, who have been with the company for an average of over 15 years, indicating strong client relationships.
Share Repurchase Initiative: 5. Share Repurchase Program: The company repurchased approximately $80 million of notes and term loan debt, along with 3.5 million shares for about $13 million, demonstrating confidence in its financial position and commitment to shareholder value.
Negative
Branded Services Revenue Decline: Revenues for Branded Services declined 4% to $283 million, indicating a challenging environment for CPG companies and retailers.
Branded Services EBITDA Decline: Adjusted EBITDA for Branded Services decreased by 4% to $49 million, reflecting the impact of the weaker market conditions.
Cash Generation Outlook: Despite overall revenue growth, the company expects minimal excess cash generation in 2024 due to ongoing investments and organizational changes.
High Debt to Earnings Ratio: The net leverage ratio, including discontinued operations, was approximately four times adjusted EBITDA, indicating a high level of debt relative to earnings.
Capital Expenditures Guidance: Total capital expenditures for the year are expected to be at the lower end of the guidance range, around $65 million to $80 million, suggesting tighter financial management.
ADV FAQs
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ADV Earning Call Sentiment
Advantage Solutions Inc. (ADV) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
ADV.O
0.8%Positive
The earnings call presents a mixed picture: modest revenue growth and improved EBITDA in certain segments contrast with challenges in the Branded Services and high debt levels. Positive aspects include strong performance in Experiential Services, share repurchases, and improved capital efficiency. However, concerns about consumer demand, declining Branded Services, and lack of clear guidance temper optimism. The Q&A reveals cautious optimism but highlights uncertainties in client sentiment and market competition. Given the small-cap nature of the company, the overall sentiment is neutral, expecting minor stock price fluctuations.
