Stagwell (NASDAQ:STGW) Posts Quarterly Earnings Results, Beats Estimates By $0.03 EPS

Stagwell (NASDAQ:STGW) issued its quarterly earnings data on Thursday. The company reported $0.34 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.31 by $0.03, FiscalAI reports. Stagwell had a net margin of 0.53% and a return on equity of 27.30%. The business had revenue of $816.03 million for the quarter, compared to the consensus estimate of $838.38 million. During the same period in the previous year, the firm earned $0.24 EPS. The company’s quarterly revenue was up 9.8% compared to the same quarter last year.

Here are the key takeaways from Stagwell’s conference call:

• Record third-quarter performance: Revenue rose 10% to $816 million, net revenue increased 8% to $664 million, and adjusted EBITDA grew 25% to $144.8 million, with margins expanding 290 basis points to 21.8%. Adjusted EPS increased 42% to $0.34.
• AI and digital transformation momentum accelerated. Digital Transformation grew 23% organically and Marketing Cloud grew 108%, while enterprise technology bookings reached $59 million year to date—more than double the initial target. Management doubled its 2027 enterprise tech bookings goal to $150 million and highlighted the higher margins of software revenue.
• Full-year guidance was raised: Stagwell now expects adjusted EBITDA of $490 million–$540 million and adjusted EPS of $1.07–$1.21, while maintaining its 8%–12% total net revenue growth and 50%–60% free-cash-flow conversion outlook.
• New growth opportunities are expanding. Stagwell won a federal assignment with a total contract size of $1.5 billion over five years, acquired ad-operations platform Freestar, expanded its Palantir partnership, and reported record third-quarter net new business of $168 million.
• Some businesses and regions remain pressured: Marketing Services net revenue declined 9% year over year, Media and Commerce fell 2% organically, and Middle East disruptions created a $9 million headwind. Management also acknowledged continued turmoil and timing delays in the creative-services market.

Stagwell Stock Performance

Stagwell stock traded up $0.95 during mid-day trading on Thursday, hitting $9.79. The company had a trading volume of 2,405,178 shares, compared to its average volume of 1,603,495. The company’s fifty day moving average is $8.65 and its 200-day moving average is $7.12. Stagwell has a 12-month low of $4.28 and a 12-month high of $10.10. The company has a market capitalization of $2.39 billion, a price-to-earnings ratio of 162.42 and a beta of 1.30. The company has a current ratio of 0.81, a quick ratio of 0.81 and a debt-to-equity ratio of 2.11.

Insider Activity

In other news, insider Frank Lanuto sold 62,000 shares of the firm’s stock in a transaction that occurred on Friday, July 31st. The stock was sold at an average price of $8.46, for a total value of $524,520.00. Following the transaction, the insider owned 491,977 shares in the company, valued at $4,162,125.42. This trade represents a 11.19% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 11.20% of the stock is owned by company insiders.

Wall Street Analysts Forecast Growth

Several research firms have recently commented on STGW. Needham & Company LLC boosted their target price on shares of Stagwell from $8.00 to $10.00 and gave the stock a “buy” rating in a report on Thursday, July 30th. Wall Street Zen lowered shares of Stagwell from a “strong-buy” rating to a “buy” rating in a report on Sunday. Rosenblatt Securities increased their price objective on shares of Stagwell from $9.00 to $10.00 and gave the stock a “buy” rating in a research report on Tuesday, August 4th. B. Riley Financial boosted their price objective on Stagwell from $8.00 to $10.00 and gave the company a “buy” rating in a report on Friday, July 31st. Finally, Weiss Ratings raised shares of Stagwell from a “hold (c-)” rating to a “hold (c)” rating in a research note on Thursday, October 8th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $10.17.

About Stagwell

Stagwell Inc is a global marketing and communications services company that helps brands, organizations and institutions develop strategies, engage audiences and manage their reputations. Its services include advertising, media, public relations, digital marketing, consumer insights, creative development and marketing technology.

The company operates through a network of agencies and specialized businesses serving clients across North America, Europe, Asia-Pacific and other international markets.