By Adria Calatayud

WPP is scheduled to report results for the first quarter on Friday. Here is what you need to know.

REVENUE FORECAST: The London-based advertising and marketing-services group is forecast to post a 2.5% fall in like-for-like revenue less pass-through costs, according to consensus estimates compiled by Vuma. WPP reported a 2.3% decline for last year's fourth quarter and a 1.6% fall for the first quarter.

Shares in WPP fell nearly 30% during the first quarter and continued to decline in April, shedding about a third of their value since the start of the year. The stock is trading at levels last seen during the Covid-19 pandemic.

WHAT TO WATCH

--Investors will focus on how WPP's organic growth fares as well as on any comments about clients cutting or pausing spending in light of uncertainty about tariffs and the global economy, Barclays analyst Julien Roch wrote in a note to clients. UBS analyst Adam Berlin said he will be watching for mentions of any cuts or freezes in clients' ad budgets so far.

--WPP guided for 2025 revenue less pass-through costs ranging from flat to falling by up to 2% on a like-for-like basis, with a stable headline operating profit margin. Analysts expect a 1.1% revenue decline, according to the Vuma consensus.

The company is likely to reaffirm its 2025 guidance, but any comments on the potential impact of tariffs or economic uncertainty from the second quarter onward will be in focus, UBS's Berlin said. The recent share performance points to market expectations that WPP executives will strike a cautious tone at the results for the rest of the year, Morgan Stanley analyst Laura Metayer said. France's Publicis Groupe reiterated its forecasts for the year, but U.S. peer Omnicom Group turned more cautious and reduced the lower end of its guidance range.

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

(END) Dow Jones Newswires

April 24, 2025 04:26 ET (08:26 GMT)

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