No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - Shares in S4 Capital surged by a 26% on Tuesday after the advertising group reported better-than-expected earnings and said revenues this year would be in line with forecasts despite a hit from the Iran war in the first quarter.
The company said like-for-like net revenue this year would be in line analyst consensus estimates. First-quarter net revenue would be lower as clients pulled ads due to the conflict.
Operational core earnings fell 7.5% to 81.2m, beating the firm's own guidance of 75m. Net revenue for the 12 months to December was down 10.8% to 673m.
"We expect clients to remain cautious in the near term, reflecting heightened macroeconomic uncertainty as a result of the conflict in the Middle East. This challenging environment results in more measured decision-making, particularly as technology clients continue to prioritise AI-related capital expenditure over operating expenditure, such as marketing," the company said.
Reporting by Frank Prenesti for Sharecast.com
See the latest RNS on Investegate
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.