Overview

• Advantage Solutions Q3 revenue declines 2.6% to $915 mln, missing analyst expectations

• Company reports Q3 net income of $21 mln, improving from a net loss last year

• Company reaffirms revenue outlook, lowers adjusted EBITDA guidance due to divestiture impact

Outlook

• Advantage Solutions reaffirms revenue guidance for fiscal year 2025

• Company lowers adjusted EBITDA outlook due to divestiture impact

• 2025 revenue expected to be down low-single digits to flat

Result Drivers

• EXPERIENTIAL SERVICES - Strong demand and execution in Experiential Services partially offset weaknesses in Branded Services

• CASH POSITION - Sequential cash increase driven by working capital improvements and monetization of Acxion Foodservice stake

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the advertising & marketing peer group is "buy."

• Wall Street's median 12-month price target for Advantage Solutions Inc is $2.50, about 50.8% above its November 5 closing price of $1.23

• The stock recently traded at 3 times the next 12-month earnings vs. a P/E of 4 three months ago

Press Release: ID:nGNX8crS9G

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)