WPP PLC (LSE:WPP), the advertising and marketing conglomerate, will release its third-quarter results on Wednesday, hoping to have kept up recent momentum that saw first half revenue increase by more than 10%.
It said at its August interims that adjusted sales are expected to rise 6% to 7% this year, compared to end-April growth guidance of 5.5% to 6.5%, with annual revenue less pass-through costs growth of 3-4% and headline operating profit margin of 15.5-16%.
Susannah Streeter, analyst at Hargreaves Lansdown, said the company has been “firing on all cylinders,” after “corporate wallets reopened”.
Investors have been concerned about the economic backdrop, however, with ad budgets likely to take a hit amid an economic slowdown.
A more focused structure will help the company if market conditions worsen, according to Streeter, and a close eye will be kept on whether sales and margins do increase as forecast.