Stagwell (NASDAQ:STGW) Issues FY 2025 Earnings Guidance

Stagwell (NASDAQ:STGW) updated its FY 2025 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of 0.750-0.880 for the period, compared to the consensus estimate of 0.730. The company issued revenue guidance of $3.1 billion-$3.1 billion, compared to the consensus revenue estimate of $2.9 billion.

Stagwell Trading Down 14.2%

Shares of STGW stock opened at $4.82 on Friday. The company has a debt-to-equity ratio of 1.90, a current ratio of 0.86 and a quick ratio of 0.86. The stock has a 50 day simple moving average of $5.25 and a 200-day simple moving average of $5.13. The company has a market cap of $1.25 billion, a price-to-earnings ratio of 80.33 and a beta of 1.51. Stagwell has a 1-year low of $4.03 and a 1-year high of $8.18.

Stagwell (NASDAQ:STGW) last released its earnings results on Thursday, November 6th. The company reported $0.24 EPS for the quarter, topping analysts’ consensus estimates of $0.23 by $0.01. Stagwell had a negative net margin of 0.06% and a positive return on equity of 14.54%. The business had revenue of $743.00 million during the quarter, compared to analysts’ expectations of $743.11 million. During the same quarter in the previous year, the company earned $0.22 earnings per share. The company’s quarterly revenue was up 4.5% on a year-over-year basis. Stagwell has set its FY 2025 guidance at 0.750-0.880 EPS. On average, equities research analysts expect that Stagwell will post 0.59 EPS for the current fiscal year.

Analysts Set New Price Targets

A number of equities analysts recently commented on the company. Morgan Stanley reduced their price objective on Stagwell from $8.00 to $7.00 and set an “equal weight” rating on the stock in a research report on Friday, August 1st. Weiss Ratings reissued a “sell (e+)” rating on shares of Stagwell in a report on Wednesday, October 8th. Needham & Company LLC raised their price objective on shares of Stagwell from $6.36 to $7.25 and gave the stock a “buy” rating in a research report on Friday. Zacks Research raised shares of Stagwell from a “strong sell” rating to a “hold” rating in a research note on Monday, September 1st. Finally, Rosenblatt Securities reduced their price target on shares of Stagwell from $10.00 to $9.00 and set a “buy” rating on the stock in a research report on Wednesday, October 29th. Three analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $8.15.

Institutional Trading of Stagwell

Several hedge funds have recently made changes to their positions in the business. Tower Research Capital LLC TRC raised its holdings in Stagwell by 311.8% during the second quarter. Tower Research Capital LLC TRC now owns 10,790 shares of the company’s stock worth $49,000 after purchasing an additional 8,170 shares in the last quarter. AQR Capital Management LLC purchased a new position in shares of Stagwell during the first quarter worth about $74,000. Dynamic Technology Lab Private Ltd acquired a new position in Stagwell in the 1st quarter valued at about $137,000. The Manufacturers Life Insurance Company raised its stake in Stagwell by 36.7% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 42,860 shares of the company’s stock valued at $193,000 after acquiring an additional 11,504 shares during the last quarter. Finally, Franklin Resources Inc. lifted its position in Stagwell by 20.1% during the 2nd quarter. Franklin Resources Inc. now owns 47,602 shares of the company’s stock worth $214,000 after acquiring an additional 7,981 shares during the period. Institutional investors and hedge funds own 35.61% of the company’s stock.

Stagwell Company Profile

Stagwell Inc provides digital transformation, performance media and data, consumer insights and strategy, and creativity and communications services. The company operates through three segments: Integrated Agencies Network, Brand Performance Network, and Communications Network. It designs and builds digital platforms and experiences that support the delivery of content, commerce, service, and sales; creates websites, mobile applications, back-end systems, content and data management systems, and other digital environments; designs and implements technology and data strategies; and develops software and related technology products, including artificial intelligence (AI)-enabled communications, research, and media technology, cookie-less data platforms for advance targeting and activation, software tools for e-commerce applications, specialty media solutions in the augmented reality space, and text messaging applications for consumer engagement.