WPP (LON:WPP) Releases Earnings Results

WPP (LON:WPP) issued its earnings results on Friday. The company reported GBX 1.80 earnings per share (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

WPP traded up GBX 16.40 during trading on Friday, hitting GBX 411.40. The stock had a trading volume of 12,122,382 shares, compared to its average volume of 31,923,291. The firm has a market cap of £4.44 billion, a PE ratio of -20.57, a P/E/G ratio of 13.47 and a beta of 0.68. The company has a current ratio of 0.89, a quick ratio of 0.89 and a debt-to-equity ratio of 268.98. WPP has a 12 month low of GBX 218.50 and a 12 month high of GBX 411.40. The company has a 50 day simple moving average of GBX 277.32 and a 200-day simple moving average of GBX 269.30.

Analysts Set New Price Targets

A number of analysts have issued reports on the stock. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and issued a GBX 425 target price on shares of WPP in a research note on Friday. Berenberg Bank restated a “buy” rating and set a GBX 405 price target on shares of WPP in a report on Friday. Citigroup upped their price objective on shares of WPP from GBX 275 to GBX 285 and gave the stock a “neutral” rating in a report on Thursday, April 30th. Finally, JPMorgan Chase & Co. increased their target price on shares of WPP from GBX 350 to GBX 390 and gave the stock a “neutral” rating in a research report on Friday. Two equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of GBX 376.25.

Insiders Place Their Bets

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

More WPP News

Here are the key news stories impacting WPP this week:

• Positive Sentiment: WPP reported profit growth and said its restructuring and turnaround initiatives are progressing. Investors appeared to focus on improved profitability and signs of recovery, outweighing concerns about the top-line decline. WPP shares soar as advertising group shows signs of recovery
• Positive Sentiment: Analyst support strengthened: Deutsche Bank reaffirmed a “buy” rating with a GBX 425 target, while Berenberg reiterated “buy” with a GBX 405 target. JPMorgan also raised its target from GBX 350 to GBX 390, although it maintained a “neutral” rating. Broker ratings
• Positive Sentiment: The market reaction reflected optimism that WPP’s overhaul could stabilize the business after a difficult period, with reports describing the move as a turnaround bounce driven by improving execution and profit resilience. WPP shares jump as overhaul begins to bear fruit
• Neutral Sentiment: Quarterly earnings were reported at GBX 1.80 per share. However, WPP still recorded a negative net margin of 1.59% and negative return on equity of 7.54%, highlighting that the recovery remains incomplete.
• Negative Sentiment: Like-for-like adjusted revenue fell 4.7% in the first half, and WPP is cutting jobs as it manages ongoing weakness in demand. The revenue decline remains the main risk to a sustained recovery and could limit future earnings growth. 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.