WPP (LON:WPP) is expected to post a fall in net sales when it updates investors on its first-quarter performance next week. The update will come after the advertising giant said last month that its 2018 had come in at the upper end of its guidance, while cautioning that it expected 2019 to be challenging.
This Thursday has seen a rise in the WPP share price, with the group’s shares having added 0.52 percent to 927.00p as of 14:45 BST. The stock is outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.05 percent higher at 7,474.86 points. The ad giant’s shares have lost about 17 percent of their value over the past year, as compared with about a two-percent gain in the Footsie.
WPP to post results next week
WPP is scheduled to updated investors on its first-quarter performance next Friday, April 26, and Proactive Investors reports that Liberum Capital expects the ad giant to unveil a fall in organic net sales of -2.2 percent. The see the group’s North American business as the main driver of the declines, down an expected -9.5-percent year-on-year due to the loss of accounts including a large chunk of Ford.
“We don’t expect much new from the statement, either on FY performance or a possible partial sale of the Kantar business,” the broker pointed out, as quoted by the newswire. “At c. 9x FY19E adjusted PE and offering a 6.6-percent dividend yield, the shares are attractively valued but there probably needs to be signs of an improvement in Q2 performance to drive further momentum.”
Analysts weigh in on ad giant
The 22 analysts offering 12-month targets for the WPP share price for the Financial Times have a median target of 1,000.00p, with a high estimate of 1,520.00p and a low estimate of 800.00p. As of April 12, the consensus forecast amongst 25 polled investment analysts covering the blue-chip group has it that the company will outperform the market.