From Cazenova just now .... DYOR .... but quick :)

WPP - upgrade to OUTPERFORM - interims due 26 Aug which we expect to be strong, reflecting gd Q2 fig's already reported by peers. We see potential for EPS upgrades of up to 5%-10% N/T (combination of top line, margin & US$). L/T we expect EPS growth of up to 17%-18% pa before maturing at 11%-12% pa. Key risks are (1) further M&A (2) prem valuation (17.1x 06 EPS before any upgrade), representing a 31% prem to UK mkt & 33% to UK media sector. Despite this we still believe it has room to outperform. Our DCF valuation gives 760p, 28% upside from here.

Queen1, hard to tell until we see the results i guess. The sp hasn't really moved with any significance and has been keeping with the trend since May.
I'm very hopeful of a move above the 610 range, which should signal an attack on this years previous high (625) and then onwards and upwards. In the short/medium term the trend is very much our friend. The company seems to be heading in the right direction and all signs are good.

Daws

Afternoon,

Last chance for people to buy before interims tommorrow. Could see some decent buying before the bell.

Daws

more good news ahead of tommorrow

Broker snap: WPP on good form

Date: Thursday 25 Aug 2005

LONDON (ShareCast) - Ad agency WPP was on top form today after ING turned buyer on the stock ahead of first half figures due tomorrow.

ING upgraded WPP Group to 'buy' from 'hold' saying it sees no room for disappointment concerning the figures, unlike next weeks European rival TF1.

ING said that since full-year results were published six months ago, WPP has underperformed Publicis and the FTSE 100 though this trend is now expected to reverse.

ING raised its price target for the advertising group to 710p from 600p.

Daws Hi,

Lets hope the figures live up to all the expectations :)

Cheers,
PM

Paul,

Things look very good! Couldn't find any issues at all. No point posting the interims (very long read!) But anybody is interested i think you should take a look.
Price targets are being raised left right and centre and we're bound to get some good weekend press.

Daws

Profits soar at WPP
MoneyAM
WPP Group, the world's second largest advertising services group, reported a sharp rise in pretax profits.

The group said trading prospects for the full-year remain good.

WPP, which owns businesses including advertising agency Ogilvy & Mather Worldwide and public relations company Buchanan Communications, said headline pretax profit before goodwill amortisation for the six months to June 30th rose 32% to 254.8m, compared to the analyst average forecast of 250m, from 193m a year earlier.

Revenue rose almost 22% to 2.47bn, from 2.02bn in line with the analyst forecast 2.4bn.

Hi All,

Reuslts are out, profit up 32% just like Cazenova suggested two weeks ago, which was the reason for me startting this thread. It took a while for the other analysts to upgrade WPP, they only did that yesterday !

Lets hope the S.P flies up to 7.50 over the next few days :)

Another PM1 success ????

Cheers,
PM


WPP reports sharp rise in H1 profits

LONDON (AFX) - WPP Group PLC, the world's second largest advertising
services group, reported a sharp rise in half-year pretax profits in line with
expectations and said trading prospects for the full-year remain good.
WPP, which owns businesses including advertising agency Ogilvy & Mather
Worldwide and public relations company Buchanan Communications, said headline
pretax profit before goodwill amortisation for the six months to June 30 rose 32
pct to 254.8 mln stg, compared to to the analyst average forecast of 250 mln
stg, from 193.0 mln stg a year earlier.
Revenue rose almost 22 pct to 2.47 bln stg, from 2.02 bln stg in line with
the analyst forecast 2.4 bln stg.

Daws Hi,

SNAP !!!!

I only saw your post appear after I posted :))))

Onwards and upwards :)

Cheers,
PM

LOL - cracking set of results, looking forward to some blue days ahead. Can't wait for all that tasty weekend press, which includes Monday!

Daws

Just topped up :)

Cheers,
PM

Compare the Cazenova forecasts to the results, and even they were conservative ....

WPP - upgrade to OUTPERFORM - interims due 26 Aug which we expect to be strong, reflecting gd Q2 fig's already reported by peers. We see potential for EPS upgrades of up to 5%-10% N/T (combination of top line, margin & US$). L/T we expect EPS growth of up to 17%-18% pa before maturing at 11%-12% pa. Key risks are (1) further M&A (2) prem valuation (17.1x 06 EPS before any upgrade), representing a 31% prem to UK mkt & 33% to UK media sector. Despite this we still believe it has room to outperform. Our DCF valuation gives 760p, 28% upside from here.


WPP

2005 INTERIM RESULTS IN ACCORDANCE WITH IFRS
---------------------------------------------

Billings up almost 24% at #11.3 billion
-----------------------------------------
Reported revenue up almost 22% to #2.5 billion
-----------------------------------------------
Like-for-like revenue up 6%
----------------------------
Headline operating profit up over 31% to #300 million
------------------------------------------------------
Headline profit before tax up 32% to #255 million
---------------------------------------------------
Diluted headline earnings per share up almost 28% at 13.8p
-----------------------------------------------------------
Net earnings up over 45% to #135 million
-----------------------------------------
Interim ordinary dividend up 20% to 3.00p per share
----------------------------------------------------

Get the profit takers out of the way, and let the institutions and funds pile in, they know what WPP are worth, and the growth, and they would love 25% profit from these, even if it takes them a few months or up to a couple of years to get it, that would still make it a good performer for them.

They don't pile in until a few days after the news ....

Cheers,
PM

Paul, bit surprised by the markets reaction. Still expect to finish the day blue, the results are there for everyone to see!

Daws

Not sure there has been a rash of profit taking Paul, the SP has been under selling pressure prior to the results. Sometimes there is no explaining the Markets reaction to a good set of results. On this occasion I don't think that the good news was already in the SP, so therefore we should see some healthy rises over the coming weeks. Fully agree Daws and would expect to finish in the blue, at the very least in the region of 590, trendline support.

pth

Pth,

590 appears to be the bottom of our recent trendline, so could be a great buying opp. Good to see Merrill Lynch reiterating its buy stance and 690p price target.

Daws

Daws

Opened a long about a week a go, which is looking a tad sad at the moment, but averaged down with two more longs this morning. Trend is up and 590 looks like the trend support so hopefully the dip is now complete and next week should see the up trend resume.

pth

Hi All,

Cazenova say that the price should go up much better after the 9:30 morning meeting is over, and analysts can see that the growth is still there. They wondered about the recent trading, as the growth seemed to have slowed a bit, but the figures were confusing, as it was the strong Aug 2004 that made the figures seem to be dropping, but they are still going up.

Cheers,
PM

Hi All,

These should fly now, turned blue here, morning meeting with analysts will make them all send out positive notes, and this afternoon the USA will open, and supercharge the price :)

Cheers,
PM

lol - Snap, also averaged down this am at 589.8. If i was more patient i could of got lower.. i'll never learn.

Daws

Hi All,

News is flying ....

http://news.google.co.uk/news?q=wpp&hl=en&lr=&tab=wn&ie=UTF-8&scoring=d

Cheers,
PM

WPP profits jump 32%

9.30am: Sir Martin Sorrells WPP network saw revenues increase by 6% in the first six months of 2005, with pre-tax profits up a massive 32% year on year to 255m.
The owner of the MindShare and Mediaedge:cia media agencies and a string of creative shops said like-for-like revenues once the addition of the Grey network had been added increased by 22% to 2.47bn.

Across the group new business billings made 1.9bn, as its Asia-Pacific, Latin America, Africa and Middle East regions performed well.

Revenues elsewhere in the group saw a 5.9%, 2.7% and 4% increase in North America, the UK and Continental Europe respectively.

The group said: Western Europe, although relatively more difficult, has improved and the United Kingdom has stabilised.

Rates of growth in Europe continue, however, to be two-paced, with Germany, France, Sweden, Denmark, Benelux and Portugal remaining softer and Central and Eastern Europe, Russian and the CIS countries in particular, more buoyant.

Elsewhere, WPP said the role of procurement teams in marketing decisions and the concentration of media ownership in some countries would stimulate consolidation in the industry, including advertising and marketing services.

The group is very well positioned to capitalise on these developments and to focus on developing the best talents, the strongest management structures and the most innovative incentive plans in the industry for our people, the group said in a statement.

http://www.mediaweek.co.uk/articles/folder2005/08/AugustDaily/WPP-1h2005-results