Shares in WPP (LON:WPP) have advanced in London in today’s session, with investors digesting the ad giant’s first results since the departure of its former chief executive Martin Sorrell. He left the company earlier this month, after the group appointed an independent counsel to look into allegations of ‘personal misconduct’ by Sorrell.
As of 09:24 BST, WPP’s share price had added 7.17 percent to 1,231.00p, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.22 percent higher at 7,518.34 points. The group’s shares have lost just over a quarter of their value over the past year, as compared with about a 4.4-percent gain in the Footsie.
WPP posts first-quarter results
WPP announced in a statement this morning that its reported revenue had dropped four percent to £3.56 billion in the first quarter of the year. The group’s net new business meanwhile came in at $1.74 billion in billings won in the first quarter.
“We are pleased to announce the Group’s first quarter trading update, which is in line with our expectations. Our guidance for 2018 remains unchanged,” WPP’s executive chairman Roberto Quarta commented in the statement. The group’s joint chief operating officers Mark Read and Andrew Scott meanwhile noted that the group intended to take “a fresh look at our strategy, developing a vision for the Group that recognises the challenges and opportunities presented by the structural shifts in our industry, and executing resolutely against it”.
Analysts on advertising giant
The 26 analysts offering 12-month price targets for WPP for the Financial Times have a median target of 1,400.00p on the shares, with a high estimate of 1,940.00p and a low estimate of 520.00p. As of April 27, the consensus forecast amongst 29 polled investment analysts covering the ad giant advises investors to hold their position in the company.