On Friday, Needham maintained its Buy rating on comScore (NASDAQ:SCOR) stock but reduced the price target to $17 from the previous $25.
The adjustment comes in response to revised expectations for the company's second quarter and full-year 2024 financial performance.
Needham anticipates a decline in Syndicated & Ad Measurement revenues and a larger quarter-over-quarter foreign exchange impact than initially forecasted for the second quarter of 2024.
For the second quarter of 2024, Needham now projects comScore's revenue to be $88.8 million, a 5% year-over-year decrease and 4% below previous estimates.
Adjusted EBITDA is expected to reach $7.1 million, down 20% year-over-year and 17% below prior estimates. Moreover, the firm anticipates a GAAP EPS loss of $0.65, which is substantially lower than the earlier estimate, by 80%.
The full-year 2024 outlook has also been adjusted. Revenue is now estimated at $375 million, reflecting a 1% year-over-year increase but still 1% below previous expectations.
Adjusted EBITDA for the year is forecasted at $47 million, up 6% year-over-year but 10% lower than prior estimates. The GAAP EPS for 2024 is projected at $0.34, a significant drop from the previously estimated $2.11.
The revised price target of $17 is based on these updated estimates, reflecting the impact of the anticipated lower revenues and earnings for both the upcoming quarter and the full year.
In other recent news, Comscore, a media measurement and analytics company, reported mixed Q1 2024 results. While revenue declined by 5% compared to the same quarter in the previous year, the company saw a significant increase in its adjusted EBITDA, which rose by 55% to $8.1 million.
This growth is attributed to the company's robust double-digit growth in cross-platform products, particularly Proximic by Comscore, which experienced a 75% increase in impressions serviced.
Despite facing integration delays that impacted revenue timing, Comscore remains confident in its strategy, anticipating continued rapid growth in its cross-platform products.
The company has also received MRC accreditation for TV audience measurement and JIC certification as a transactable cross-platform currency.
Comscore maintains its full-year revenue and adjusted EBITDA guidance for 2024. While Q2 revenue is expected to be lower compared to the previous year, growth is anticipated in the second half of the year.
These recent developments reflect Comscore's strategic focus on cross-platform products and its optimism about the growth potential of this business segment.
InvestingPro Insights
Amidst the backdrop of Needham's revised expectations for comScore (NASDAQ:SCOR), current InvestingPro data sheds additional light on the company's financial health. With a market capitalization of approximately $64.68 million, comScore is navigating through challenging times, reflected by a negative P/E ratio of -0.73, indicating investor concerns over profitability. The company's revenue for the last twelve months as of Q1 2024 stands at $366.58 million, with a slight decline of 1.99%. Despite this, comScore's gross profit margin remains strong at 45.11%, showcasing its ability to maintain profitability at the core operational level.
InvestingPro Tips reveal a mixed outlook: while comScore operates with a moderate level of debt, short-term obligations exceed liquid assets, posing potential liquidity risks. Additionally, the company has not been profitable over the last twelve months, and the price performance has been disappointing, with significant declines over the past three months. On a more positive note, analysts predict comScore will turn profitable this year, which could signal a turnaround for the company.
For readers seeking a deeper analysis, there are additional tips available on InvestingPro, which can provide a more comprehensive understanding of comScore's financial position and future prospects. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription for access to these insights. With the current data and the potential for a profitable year ahead, investors may find these insights particularly valuable in making informed decisions.
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