WPP (LON:WPP) Releases Earnings Results

WPP (LON:WPP) posted its earnings results on Friday. The company reported GBX 1.80 EPS for the quarter, Digital Look Earnings reports. WPP had a negative net margin of 1.59% and a negative return on equity of 7.54%.

WPP Stock Performance

Shares of WPP traded up GBX 16.40 during trading hours on Friday, reaching GBX 411.40. 12,122,382 shares of the company traded hands, compared to its average volume of 31,923,291. The company has a quick ratio of 0.89, a current ratio of 0.89 and a debt-to-equity ratio of 268.98. The business has a fifty day moving average price of GBX 277.32 and a 200-day moving average price of GBX 269.30. WPP has a 12-month low of GBX 218.50 and a 12-month high of GBX 411.40. The stock has a market capitalization of £4.44 billion, a P/E ratio of -20.57, a P/E/G ratio of 13.47 and a beta of 0.68.

Insiders Place Their Bets

In other news, insider Peter Agnefjäll purchased 75,000 shares of the stock in a transaction on Thursday, May 21st. The stock was bought at an average price of GBX 281 per share, with a total value of £210,750. Also, insider Cindy Rose sold 88,227 shares of the business’s stock in a transaction dated Monday, June 15th. The shares were sold at an average price of GBX 282, for a total value of £248,800.14. Company insiders own 2.04% of the company’s stock.

Analyst Ratings Changes

Several equities analysts have issued reports on the stock. Berenberg Bank reaffirmed a “buy” rating and issued a GBX 405 price target on shares of WPP in a report on Friday. JPMorgan Chase & Co. raised their price objective on WPP from GBX 350 to GBX 390 and gave the stock a “neutral” rating in a research report on Friday. Citigroup upped their target price on WPP from GBX 275 to GBX 285 and gave the company a “neutral” rating in a research report on Thursday, April 30th. Finally, Deutsche Bank Aktiengesellschaft reissued a “buy” rating and issued a GBX 425 price target on shares of WPP in a report on Friday. Two research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, WPP currently has a consensus rating of “Moderate Buy” and an average target price of GBX 376.25.

Key WPP News

Here are the key news stories impacting WPP this week:

• Positive Sentiment: Turnaround progress outweighed weak revenue. WPP reported a 4.7% like-for-like decline in first-half adjusted revenue, but profit growth and improving operational trends suggested that its restructuring and cost-cutting program is gaining traction. WPP shares soar as advertising group shows signs of recovery
• Positive Sentiment: Investors responded favorably to the earnings update. Multiple reports described the results as a sign that WPP’s overhaul is starting to bear fruit, with the recovery outlook outweighing concerns about the group’s top-line decline. WPP shares jump as overhaul begins to bear fruit
• Positive Sentiment: Broker support added to the bullish tone. Deutsche Bank reaffirmed a “buy” rating with a GBX 425 target, while Berenberg maintained “buy” with a GBX 405 target. JPMorgan also raised its target from GBX 350 to GBX 390, although it retained a “neutral” rating. Broker ratings
• Neutral Sentiment: WPP reported quarterly EPS of GBX 1.80. However, its negative 7.54% return on equity and negative 1.59% net margin underscore that the recovery remains incomplete.
• Negative Sentiment: Revenue weakness and job cuts remain risks. WPP continues to reduce its workforce as revenue falls, highlighting pressure in the advertising market and the execution risk surrounding the turnaround. WPP slashes jobs as revenue continues to fall

WPP Company Profile

WPP is the creative transformation company, using the power of creativity to build better futures for our people, planet, clients and communities.

We are a world leader in marketing services, with deep AI, data and technology capabilities, global presence and unrivalled creative talent.