STGW Earnings Prediction
The chart below shows how STGW performed 10 days before and after its earnings report, based on data from the past quarters. Typically, STGW sees a +1.67% change in stock price 10 days leading up to the earnings, and a -1.30% change 10 days following the report. On the earnings day itself, the stock moves by -1.16%. This data can give you a slight idea of what to expect for the next quarter's release.
STGW Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
788.71M
20.43%
10.89%
Gross Margin
31.37%
2.72%
2.25%
Operating Margin
5.52%
79.80%
-5.96%
Net Margin
2.01%
-75.52%
3.08%
EPS
0.03
0.00%
0.00%
No Data Available
STGW Earnings Analysis
Stagwell Inc Corporation (STGW.O) Earnings Conference Call
Positive
Fastest-Growing Industry Leader: Stagwell reestablished itself as the fastest-growing business in the industry in 2024.
Strong Revenue Growth: Revenue grew by 20% and net revenue by 14% in Q4 2024, indicating strong financial performance.
Digital Transformation Growth: Digital Transformation revenue grew by 22% and net revenue by 15% year-over-year, showcasing strong momentum in this sector.
Media and Data Revenue Growth: Performance Media and Data revenue grew by 12% and net revenue by 16% year-over-year, contributing to overall growth.
Q4 Adjusted EBITDA Performance: Adjusted EBITDA for Q4 was $123 million, reflecting continued investment in cloud and AI-based software solutions.
Cost Management Success: The company achieved a record low comp to revenue ratio of 57.5%, demonstrating effective cost management.
Revenue and Net Revenue Growth: For the full year, Stagwell posted revenue of $2.84 billion, a 12% growth over the prior year, and net revenue of $2.3 billion, a 7% growth.
Adjusted EBITDA Performance: Adjusted EBITDA for the full year was $411 million, representing an 18% margin and an improvement of 120 bps versus 2023.
Digital Transformation Growth: The Digital Transformation business saw a 12% growth among tech customers in Q4, driven by innovative projects like ContextLens and AI campaigns for Google Pixel.
Negative
Sustainability of Revenue Growth: Revenue growth of 20% and net revenue growth of 14% in Q4 may not be sustainable in the long term, raising concerns about future performance.
Profitability Concerns Amid Growth: Despite strong revenue growth, adjusted EBITDA of $123 million indicates that profitability may not be keeping pace with revenue increases.
Record Low Comp to Revenue Ratio: The comp to revenue ratio of 57.5% is a record low, but it also suggests that the company may be facing challenges in managing its workforce costs effectively.
Revenue Growth vs. Expectations: The overall growth of 12% in revenue for the full year may not be sufficient to meet investor expectations in a competitive market.
Digital Transformation Risks: The reliance on Digital Transformation and Performance Media for growth raises concerns about the diversification of revenue streams and potential vulnerabilities in these segments.
STGW FAQs
How does STGW typically perform around its earnings report dates?
Is Stagwell Inc (STGW) Q4 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
STGW Earning Call Sentiment
Stagwell Inc. (NASDAQ:STGW) Q4 2024 Earnings Call Transcript
STGW.O
-0.8%Positive
The earnings call summary indicates strong financial performance with 12% revenue growth and a low comp to revenue ratio. The Q&A further supports positive sentiment with strong organic growth expectations and a busy RFP flow. Despite competitive pressures and regulatory risks, the company's strategic investments in AI and digital transformation, along with a $100 million share repurchase program, suggest a positive outlook. The market is likely to react positively, with a stock price increase expected in the range of 2% to 8% over the next two weeks.
