Advantage Solutions Inc. (Nasdaq: ADV) raised its guidance for the year as the marketing segment of its business shows improvement.
The Irvine-based company, which provides and sales and marketing services to companies such as Walmart and Target, said it’s increasing its forecast on earnings before interest, taxes, depreciation and amortization by $5 million to between $520 million and $530 million for the year.
Marketing services, which includes in-store sampling, was hit hard last year by the pandemic and store operating restrictions, but CEO Tanya Domier noted in a statement Monday “our COVID-impacted services are rebounding steadily.”
The division helped drive the overall increase in second-quarter revenue with 59% growth from a year ago.
The digital and e-commerce business, which last year helped offset declines in parts of the Advantage business, saw sales increase 22% in the quarter compared to a year ago.
Advantage reported revenue of $850 million in the second quarter, up 32.5%.
The company swung to a profit during that same period reporting net income of $5.8 million, compared to a net loss of $37.8 million a year ago.
Shares of the company closed down 1% in Monday’s trading session to $9.92 for a market cap of $3.2 billion.