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Trading Update today - SP down ... recession and inflation hurting.
(Alliance News) - WPP PLC on Thursday said it remains on track to deliver its 2023 revenue guidance, but net debt grew by GBP1.4 billion in the first three months of the year.
Shares in the London-based advertising and corporate communications firm were down 3.0% to 928.40 pence each in London on Thursday morning.
WPP said that it has seen a positive start to the year, in line with its expectations.
Revenue in the first quarter of 2023 rose by 12% year-on-year to GBP3.46 billion. Revenue less pass-through costs rose by 9.9% to GBP2.83 billion from GBP2.57 billion.
WPP said the improved performance was broad-based across all our business lines and regions. Further, it said that it has won net new business of about USD1.5 billion in the quarter, including from Adobe Inc, Ford Motor Co and Mondelez International Inc.
Buying today, thank you svb.
Plenty more left in the tank for 2023. CEO Mark Read buoyant on Bloomberg this morning for 2023
SP touched 1082 today then retraced. Loving those results. Divvi up 24%. 2023 with China reopening should be good.
See the RNS.
Chart wise sp looks overdone, but if they confirm expected organic growth in FY results then IMO the company is just getting a rerating and not rly much downside from here.
Cashed in half my load here, leave the rest for 1080p, maybe buy back on any big dip. Good luck all.
Thank you for your reply. It seemed that the brokers said this was a great share a few weeks ago, but today suddenly it goes up 6+%
GLA
Publicis posted great guidance, rising tide lifts all boats.
Hi all, has anyone any idea why the price jumped so much this morning? I can't find anything anywhere.
GLA
Goldman Sachs raises WPP to 'buy' (neutral) - price target 1,158 (920) pence
If suitors do have their eyes on WPP as a takeover target they better do it now as the buyers premium, if it comes, could take the price well higher than last year £12. All uneducated speculation of course.
Nice to see across the board positivity, long may it continue.
SP struggling to make gains but added To Zacks Strong Buy list today.
https://uk.finance.yahoo.com/news/strong-buy-stocks-december-23rd-121912592.html
Another acquisition today ..blimey they dont stop.....
" It is aligned with WPP's?accelerated growth strategy, building on existing capabilities in the areas of commerce and technology"
SP has recovered well but still oversold IMHO.
Pearls
I am a fan of WPP ...and they are smart enough to be working past the current economic headwinds and looking to the future mid-term
The market is though at present very focused on costs, margins, ..and reacts to those .... they arent looking too much at the mid term right now....everything for the market is currently short term thinking ...at present
Alphabet results last night will have had an effect on the advertising sector , this morning too - of course
Pokerchips, as SFOR found, when you expand so fast, it does take time to absorb everything and the expected synergies then come through.
I suspect these sorts of companies always have a two way pull between wanting to expand, take over other companies, and needing to take time out to do the back office increased support to satisfactorily absorb the new entity.
These were good results, and I thoroughly expect the WPP share price to roll upwards shortly.
" Yet the shares fall over 3%???"
One part of the update referred to operating margins where they suggested that the margins weren't up as much as previously guided
"headline operating margin up 30 to 50 bps (previously up around 50 bps)"
not surprising really , that the costs of acquiring business have increased
Yet the shares fall over 3%???
These were great results, and if I was in charge at WPP I'd increase the share buy back even further, taking particular advantage of days like this when the shares fall.
The company is taking on new business at a rate of knots, and is upping its forecasts. No, this share should have risen today.
Expecting reality to hit tomorrow / this afternoon then once the US wakes up and sees the bargain presented today by the UK market.
Did anyone buy any SFOR yesterday ?
up another 8.5% today
Yes S4 have never made a post tax loss of £2919 million.
Nacho99,
Yes but they have never made a post tax loss of £2919 million either.
In my view they are using debt to prop up the share price and add growth.
Profit before tax here of £419 million but increase in net debt of £1600 million
with Net debt up to £3100 million at end June 22
Currently working capital negative by £232 million YOY
I noticed net assets here at end 2021 were down to £4029 million at end of 2018 they were £9806 million.
It looks like Publicis could be a better bet. With only $239 million net debt Free cash flow of $1400 million and an operating margin of 17.5% versus only 11.5% for WPP
Yes, but last year S4 made an Operating Loss of £42.05 million.
last year WPP made an Operating Profit of £1,229.00 million.
A loss making company needs to worry about debt more than one making profits which can be used to pay the debt down.
Nacho99,
One has £billions in debt the other doesn't. Just imagine where the share price would be without the buy backs 600s is my guess.
SFOR has been over 800 and you can buy them today for 146.
As I said previously it might be a good strategy to cut some here and have some exposure over there if you want exposure to the ad space, as it will out perform WPP share price my some magnitude.
Yes, WPP has gone from 1150 to 817p. (29% drop)
But S4 have gone from 570 to 146p in the same period. (74% drop)
Everyone has different investment goals.
The two companies are in the same sector but they are in very different positions.
One has been paying divi's for years, one has never ever paid one.
Nacho99,
Thats little consolation from 1150 to 817p dividends also get cut in hard times/ recession. Potential recovery here has to be 817-950 or even 1000 plus your 3.8% divi. Or on SFOR potential recovery 147 to 420 range with 0% Divi