- WPP’s revenue less pass-through costs for the third quarter was GBP2.77 billion, closely matching the estimate of GBP2.78 billion.
- Like-for-like revenue growth was relatively flat, with a 0.5% increase.
- North America reported revenue less pass-through costs of GBP1.09 billion, slightly below the estimate of GBP1.12 billion.
- The UK exceeded its revenue estimate with GBP390 million compared to the anticipated GBP379.3 million.
- Western Europe also surpassed expectations with revenue of GBP554 million, higher than the GBP549 million estimate.
- The rest of the world fell short of estimates, with revenue of GBP729 million against the expected GBP758.9 million.
- Global Integrated Agencies met estimates exactly with revenue at GBP2.27 billion.
- Public Relations underperformed slightly at GBP274 million, below the GBP276.8 million forecast.
- Specialist Agencies outperformed with GBP223 million, higher than the predicted GBP209.2 million.
- Overall quarterly revenue was GBP3.56 billion, surpassing the GBP3.46 billion estimate.
- The forecast for the year still suggests a potential LFL revenue dip of 1% to no change, aligned with an estimate of -0.53%.
- Projected capital expenditure remains around GBP260 million.
- WPP foresees an FY24 headline operating margin improvement of 20-40 basis points, not accounting for foreign exchange impacts.
- Mergers and acquisitions are expected to have a slightly negative impact on growth due to strategic disposals and limited activity in FY 2024.
- The company is “encouraged” by quarterly progress; however, notable new business wins are anticipated to influence revenue more significantly in 2025.
- The fourth quarter is expected to face more challenging comparisons than the third quarter amid ongoing macroeconomic uncertainties.
- The sale of a majority stake in FGS Global is on track to conclude in the fourth quarter.
“`
A look at WPP PLC Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Looking ahead, WPP PLC, a communications services group, presents a mixed outlook based on the Smartkarma Smart Scores. With a strong dividend score of 4 and robust momentum score of 4, the company is positioned well to reward its investors and shows positive market momentum. However, it faces challenges in terms of value with a score of 3, growth with a score of 3, and resilience with a score of 2. The company’s operations in advertising, media investment management, and other services indicate a diverse portfolio but may be impacted by factors affecting resilience and growth.
Overall, WPP PLC‘s performance is supported by its solid dividend and momentum factors, indicating stability and positive market sentiment. However, investors may need to carefully assess the value, growth, and resilience aspects of the company to make informed decisions about its long-term prospects in the communications services sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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