08:54 AM EDT, 03/15/2024 (MT Newswires) -- Getty Images ( GETY ) could materially outperform Wedbush Securities' expectations amid potential economic improvement, even though the visual content creation company issued a lower-than-anticipated full-year outlook, the brokerage said in a client note Friday.

The company late Thursday outlined revenue to be in a range of $928 million to $947 million for the 2024 financial year, representing annual growth of 1.3% to 3.3%. It also expects adjusted earnings before interest, taxes, depreciation and amortization of roughly $298 million.

"As we look to 2024, we believe that we are well positioned to return to top line growth while remaining fiscally disciplined to continue to deliver healthy profitability," Chief Financial Officer Jenn Leyden said in the earnings statement.

Wedbush now estimates Getty to record revenue of $947 million for the year, down from its previous forecast of $1 billion, while two analysts surveyed by Capital IQ project $942.5 million. The brokerage also lowered its adjusted EBITDA estimation for the company to $308 million from $333 million.

Getty's guidance for 2024 came in below consensus as the company expects lower agency demand and continued headwinds resulting from the Hollywood writers and actors strikes, according to Wedbush. However, analysts Michael Pachter and Nick McKay believe that the decline in agency demand is temporary, while the upcoming Summer Olympics and US presidential election could drive editorial revenue substantially higher.

"Similarly, we expect an improving economy to drive agency revenue higher, which in turn should stabilize Getty's creative revenue," Pachter and McKay wrote in the note. "We expect that the company can materially outperform our expectations should the economy rebound more rapidly and dramatically than we have modeled."

For the fourth quarter ended Dec. 31, Getty swung to net earnings of $0.09 a share from a loss of $0.06 the year before, while revenue decreased 2.4% to $225.9 million. Two analysts surveyed by Capital IQ expected the company to breakeven on the bottom line, while three analysts expected revenue of $219.4 million.

Wedbush maintained its outperform rating on Getty's stock with a 12-month price target of $7.70. Shares of the company gained 6.8% in premarket trading.

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