JC Decaux soar 11% as strong earnings, dividend return lift outlook

Investing.com -- JC Decaux SA’s (EPA:JCDX) stock surged over 11% on Thursday following a strong earnings report that exceeded expectations and provided an optimistic outlook for 2025. 

The company’s full-year 2024 results outperformed analysts’ forecasts across key financial metrics, signaling a turnaround in performance and renewed confidence from investors.

JC Decaux’s fourth-quarter organic revenue growth came in at 3.6%, surpassing the consensus of 3.5%. 

The operating margin of €765 million also exceeded the market consensus of €753 million. The outdoor advertising services provider resumed dividend payments after a five-year hiatus, proposing a payout of €0.55 per share, a move that Barclays said reflects management’s confidence in the company’s future earnings potential.

For 2025, the company provided organic growth guidance of over 5% for the first quarter and an operating margin target above 20% for the full year. 

Free cash flow is expected to exceed €300 million, well above Barclays’ previous forecast of €193 million. 

Analysts noted that JC Decaux has historically delivered around 3% annual organic growth with declining margins, but they now see an opportunity for accelerated expansion, particularly through its programmatic digital advertising initiatives. 

Digital Out-of-Home advertising revenue grew by 21.9% in 2024, with programmatic revenue rising 45.6%, now comprising 9.5% of JC Decaux’s digital sales.

Barclays maintained its "overweight" rating on JC Decaux’s stock, citing the company’s improving fundamentals and the potential for higher valuation multiples. 

With shares trading at just 10 times estimated 2025 earnings, analysts argue that the market is undervaluing JC Decaux’s growth prospects.

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The strong results stand in contrast to the lingering weakness in China’s market, which remains below 2019 levels, though JC Decaux has continued to post resilient performance despite this drag. Street Furniture and Billboard segments outperformed expectations, while the Transport segment lagged slightly. 

JCDX: A Bull or Bear Market Play?

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