By Adria Calatayud

Publicis Groupe is scheduled to report results for the first quarter on Tuesday. Here is what you need to know.

REVENUE FORECAST: Analysts expect the French advertising group to report organic net revenue growth of 4.5% for the first quarter, according to consensus estimates compiled by the company. Publicis reported organic net revenue growth of 5.3% for last year's first quarter and 6.3% for the fourth quarter.

Shares in Publicis fell nearly 16% during the first quarter and continued to weaken in April amid market turmoil triggered by President Trump's plans to impose sweeping tariffs. The stock was down almost 21% since the start of the year through Friday's close.

WHAT TO WATCH

--TARIFF IMPACT: The effect of the deteriorating economic environment, driven by recent U.S. administration tariff announcements, on advertising spending will be one of the key focal points in Publicis' update, Deutsche Bank analyst Silvia Cuneo wrote in a note to clients. Trade tariffs affect the media sector mainly in an indirect way through potential macroeconomic effects, analysts at JPMorgan said in a note. While advertising is less cyclical than it was in the past, ad agencies will be hurt by reduced economic activity as well as disruption to supply chains and end markets, the JPM analysts said.

--OUTLOOK: Publicis guided for organic growth of between 4% and 5% in its 2025 net revenue and an operating margin rate slightly above 18%. The company could widen its outlook range, guiding for organic growth from flat to 5% with a 17.8%-18.2% range for its margin, the JPM analysts said. However, analysts at Morgan Stanley expect Publicis to reiterate its confidence in achieving the bottom end of its guidance, while cautioning of a potential hit from a worsening economic environment due to Trump's tariff plans.

--BUSINESS WINS: Recent account wins such as LinkedIn, Subway and Abbott Laboratories are likely to contribute to Publicis' confidence in its outlook, UBS analysts said. The market seems to be expecting a guidance cut, but the company's first-quarter update will be reassuring, UBS said.

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

(END) Dow Jones Newswires

April 14, 2025 05:00 ET (09:00 GMT)

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