By Adria Calatayud

WPP is scheduled to report results for the fourth quarter and 2024 on Thursday. Here is what you need to know.

REVENUE FORECAST: The owner of agencies including GroupM, VML and Ogilvy is expected to report a 0.2% decline in like-for-like revenue less pass-through costs--a closely watched metric--for the fourth quarter, according to the median analyst forecast in a consensus compiled by Vuma. WPP reported a 0.5% rise for the metric in the third quarter and a 0.3% increase in the fourth quarter of 2023.

PROFIT FORECAST: The London-based advertising group is expected to post a full-year headline operating profit of 1.70 billion pounds ($2.15 billion) with a margin of 14.9%, according to the same consensus. For 2023, the company made a headline operating profit of 1.75 billion pounds with a margin of 14.8%.

Shares in WPP rose 11% during the fourth quarter of 2024, but lost part of those gains at the start of this year. The stock has fallen 7.7% in the year to date.

WHAT TO WATCH

--2025 OUTLOOK: WPP's expectations for the year ahead will probably be closely watched by investors. Analysts expect WPP to deliver growth of 1.8% in 2025 like-for-like revenue less pass-through costs, according to the Vuma consensus. "We think it is likely that 2025 guidance will be underwhelming compared to expectations. We expect WPP to guide to 1%-2% organic growth for the full year," UBS analyst Adam Berlin wrote in a note to clients.

--BUSINESS WINS: WPP's growth prospects beyond this year could hinge on whether it is able to retain its media business with Mars, analysts at JPMorgan said. If WPP loses its media business with Mars, 2026 looks set to be another year when the company delivers growth below its potential, the JPM analysts said. The company managed to win some accounts in the third quarter, but recent trends on that front have been mixed, Deutsche Bank analyst Steve Liechti said. After more than five years of restructuring, WPP is now closer to the end and a recent deal between U.S. peers Omnicom and Interpublic Group adds an interesting backdrop, Liechti said.

Write to Adria Calatayud at adria.calatayud@wsj.com

(END) Dow Jones Newswires

February 26, 2025 05:02 ET (10:02 GMT)

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